Antwerp Wins Zero US Tariff on Polished Diamonds

The Antwerp World Diamond Centre (AWDC) has secured a landmark victory for Europe’s diamond trade: the United States has agreed to drop its 15% import tariff on polished diamonds of European origin.

The exemption, enacted through a US executive order and effective retroactively from 1 September, reduces the duty on Antwerp-polished diamonds to zero percent. This major shift follows months of intensive lobbying by the AWDC and negotiations between the European Commission and the US, which covered a wide spectrum of industrial exports including metals, pharmaceuticals, and chemicals.

A Tremendous Boost for Antwerp

“For goods of European origin – polished in Antwerp – which account for half of all polished diamond exports to the US, the 15% tariff will no longer apply,” said AWDC CEO Karen Rentmeesters. “This agreement strengthens our competitiveness as both a trading and polishing hub.”

With USD 2.1 billion worth of polished diamonds shipped annually from Antwerp to the US, the exemption gives Belgian diamantaires a significant edge over competitors in other cutting centers.

Impact on Indian Exports

The development could place additional pressure on India’s polished diamond industry, which accounts for the majority of the world’s diamond manufacturing. While Antwerp polishers now enjoy zero tariffs, Indian exporters continue to face a 50% duty on polished diamond shipments to the US.

This tariff disparity could make Indian goods less competitive in the American market, where price sensitivity plays a crucial role. Antwerp-based traders, already strong in larger and higher-value stones, may now gain a pricing advantage over Indian counterparts in mid-to-high segments.

Industry analysts suggest the move may also push Indian diamantaires to intensify lobbying for similar concessions. A global zero tariff framework could be critical, given that Belgian diamantaires often trade diamonds polished in India, creating an intertwined dependency between the two hubs.

Setting a Global Precedent

Diamonds polished in Antwerp now fall under the list of exemptions outlined in ‘Annex II’ of the trade agreement, which details products eligible for tariff relief once bilateral deals are reached.

Rentmeesters noted: “By setting this precedent, we have opened the door for other diamond-producing and polishing countries to negotiate similar arrangements in the near future.”

Backed by Government & EU Support

The AWDC credited both the Belgian government and the European Commission for their role in achieving the breakthrough. “Together, we demonstrated that a 15% import duty offered no benefit to the US market, which relies entirely on imports to meet consumer demand,” Rentmeesters said. “This decision underscores the strategic importance our governments place on Belgium’s diamond industry.”

What It Means for the Global Diamond Trade

The ruling delivers a tremendous boost to Antwerp’s 350 polishing houses and reaffirms the city’s position as the beating heart of the global diamond industry. It also sets the stage for fresh negotiations by other countries, raising hopes that polished diamonds worldwide could eventually enjoy zero tariffs in the US market.