In a forthright letter to the global trade, WFDB President Yoram Dvash outlined the pressing challenges confronting the natural diamond industry ahead of the crucial holiday season, despite his optimism for long-term stability.
Dvash acknowledged that US import tariffs continue to create major disruptions for all manufacturing centers, particularly India, which currently faces a 50 percent tariff rate. While the U.S. administration has indicated that tariff relief is under consideration — including a possible country-specific exemption for polished diamonds — trade participants remain cautious until final decisions are confirmed.
He noted that Europe has already secured tariff-free status for polished diamonds originating from the EU, an important win for AWDC. Dvash expressed hope that similar exemptions will soon be extended to India, Israel, Dubai and key African producing nations.
With the tariff environment unresolved, US buyers have shifted preference toward goods already located within the country, leaving manufacturing hubs to recalibrate. India, he said, has demonstrated strong coordination by reducing production, exploring new markets in the Gulf and Europe, and lobbying for measures such as easier access to credit and relaxed export norms.
On the supply front, De Beers continues to keep rough prices stable amid subdued demand and uncertainties surrounding its upcoming sale. This strategy, Dvash said, is helping moderate market volatility.
Despite the challenges, the outlook for the US consumer market remains encouraging. Holiday retail sales are forecast to cross $ 1 trillion, supported by expectations of interest rate cuts by the Federal Reserve. The jewellery segment is poised for growth, and Dvash believes that competitive pressures may lead retailers to absorb part of the price increases expected this season.
However, he cautioned that confidence in natural diamonds remains fragile as consumers increasingly gravitate toward transparency and environmentally responsible choices. Strengthening global marketing, he stressed, is now a non-negotiable requirement.
He highlighted the Luanda Accord — signed by major African producing countries — which allocates a share of diamond revenues to the Natural Diamond Council for marketing and consumer education. The WFDB, he added, is collaborating with other organizations to secure additional, innovative sources of marketing funding.
Dvash reiterated the need to push for the reclassification of “Lab Grown” diamonds under the term “synthetic,” a terminology already adopted in France. He emphasized that “Lab Grown” carries positive connotations despite being misleading, and that switching to “synthetic” would help reposition these products in a manner consistent with their factory-manufactured nature.
Concluding his message, Dvash encouraged industry members to remain proactive, united and resilient as the sector navigates evolving market dynamics and policy uncertainties.
