The WDC emphasizes that natural diamonds are not produced domestically in the U.S., yet they are integral to the health of the American jewellery industry. Tariffs on these imports could function as a consumption tax, raising prices on engagement rings, anniversary gifts, and other jewellery items, thereby burdening consumers.
Retailers have expressed concerns over inventory pressures and rising costs, which may lead to higher prices for consumers and potential disruptions in supply chains. The WDC advocates for fair trade policies that protect U.S. jewellery retail and manufacturing, ensuring stable supply chains and maintaining competitiveness.
Al Cook, CEO of De Beers, the world's largest diamond company, criticised the tariffs, stating they offer no benefit to American jobs or industries, as the U.S. lacks domestic diamond mining operations. He emphasised that the tariffs act as a consumption tax, burdening consumers and disrupting the global diamond trade.
The WDC's appeal comes amid broader concerns within the global diamond industry, which is already facing challenges from declining demand and competition from synthetic diamonds. The council urges the U.S. administration to consider granting a targeted exemption for natural diamonds to prevent further economic disruption.
As the U.S. remains the world's largest market for diamond jewellery, accounting for about half of global demand, the outcome of this appeal could have significant implications for the global diamond trade and the American jewellery industry's future.
