We are relieved and satisfied with the European Council's decision not to impose import tariffs on polished diamonds originating from the United States. This was considered as part of a package of countermeasures in response to US President Trump's import tariffs. Such European import tariffs could have caused significant damage to Belgium’s diamond sector, without having a substantial impact on the US.
“We are very pleased and grateful that our efforts in recent weeks have led to the European Council’s decision not to impose import tariffs on American diamonds,” said Karen Rentmeesters, CEO of AWDC. With an annual trade value of $3.9 billion USD in polished diamonds — representing 16% of Belgium’s total diamond trade — the United States is an extremely important trading partner for the Belgian diamond industry. “It’s common in our sector for diamonds to be shipped back and forth between Belgium and the US multiple times — for example, to obtain a certificate from one of the major diamond grading labs based there,” Rentmeesters explained. “Without this decision, those same diamonds would have been subject to import tariffs twice: once upon entry into the US, and again upon re-entry into Europe.”
We also questioned the effectiveness of such reciprocal import tariffs in actually impacting the US diamond trade. “From both a political and economic perspective, the effect on the US would be negligible, while the impact on our domestic sector would be substantial,” Rentmeesters said. “Import tariffs are applied based on the country where a product is manufactured — in the case of polished diamonds, that means where the stone was cut, which rarely happens in the US. In reality, potential tariffs on American diamonds would only affect a small portion of the trade. Yet, to enforce such tariffs, all incoming shipments would need to be subject to more rigorous checks to ensure the diamonds weren’t cut in the US. That would create complex administrative burdens and severe delays — the last thing our industry needs.”
Rentmeesters added that she hopes a negotiated solution can ultimately be found to resolve this escalating trade conflict. “This decision, however, clearly shows that the Flemish and Belgian governments — as well as the European Union — recognize and actively support the strategic importance of Belgium’s diamond industry and the free trade in diamonds. We greatly value this thoughtful and balanced European trade policy and can only continue to encourage it.”
