A landmark development for the European diamond industry comes from the United States: effective retroactively from September 1, 2025, natural diamonds cut and polished within the European Union can now be exported to the U.S. without incurring any import duties (0%). The agreement was reached through negotiations between the European Commission, the Antwerp World Diamond Centre (AWDC), and U.S. authorities.
Until now, EU-cut diamonds faced a 15% import tariff, which significantly undermined the competitiveness of European manufacturing compared to major cutting centers in Asia — especially Mumbai, which currently accounts for around 90% of global polished diamond production.
This new framework offers a concrete opportunity to revive the EU’s diamond cutting and polishing sector, historically anchored in Antwerp, once the world capital of diamonds. With duty-free access to the U.S. — the largest consumer market for diamonds — Antwerp becomes the only major global hub enjoying this trade advantage.
Whether this will lead to a meaningful return of manufacturing to the Belgian city remains to be seen. Still, the AWDC is optimistic: it believes the tariff exemption could bring back a share of operations that, over the past two decades, shifted to India due to lower labor costs and greater output capacity.
Currently, U.S. tariffs on Indian-cut diamonds can reach up to 27%, though American trade policy remains fluid, and future changes in favour of Mumbai are possible.
Importantly, the exemption applies only to natural diamonds cut and polished within the EU. Lab-grown stones, rough diamonds, and finished jewelry remain excluded. To fully capitalize on this opportunity, the European industry will need to invest in certified supply chains, traceability, and advanced processing technologies.
