Diamond rings and bracelets shown in a width window in Antwerp, Belgium. (Photo by Yoriko Nakao/Getty Emp)
Urico Nakao Getty Images News | Gety pictures
It may be made of the most difficult materials on the face of the earth, but diamonds, with complex supply chains and an expensive mark, are especially fragile to the table of aggressive tariffs for US President Donald Trump.
The precious metal faces a 10 % basic duty to import towards the United States – a market that represents more than half of the global polished diamond demand. The sector is also preparing for additional duties if the 90 -day Trump pause ends with no new agreements.
“It is very clear that the diamond industry, at the global level, is facing an ideal storm of challenges,” Karen Rentaster, CEO of the Antwerp Diamond Center, is very clear that the diamond industry, at the global level, is facing an ideal storm of challenges, “adding that the definitions are just a” newer blow. ”
Small precious stones often cross several borders before they end in the store. From the mines in Botswana or South Africa, to trading centers in the Middle East or Europe, then to cutting and polishing centers, before returning to the jewelry factory – there is often a long journey before the element reaches a store. This complex supply chain means that the diamond industry is very vulnerable to any commercial disorders.
Raw materials such as gold and copper were excluded from the US tariff, and the industry is pushing to exclude diamonds.
“You can say that loose diamonds are raw material. You do not wander with polished diamonds in your hand. You wear it in a piece of jewelry. It is in a loop or pair of ends,” said Rentmesters, who heads the 580 -year -old company, which represents more than 1,400 companies in the Diamond area in Antweep.
Introduction’s uncertainty comes at a time when the luxury industry in general is already competing with a slowdown in the demand after a postpartum boom and an economic ride in China.
Diamonds implanted in the laboratory are a continuous shift
However, the biggest disorder in this industry is to create a laboratory implanted diamond (LGD). Chemically identical, it is impossible to distinguish with the bare eye. They sell 80 % discount on the natural version and customers benefit from the cheapest prices.
More than half of the couples surveyed in the United States last year said that the engagement ring features a laboratory diamond, According to the 2025 study of the real wedding parties By the knot, which included visions of approximately 17,000 couples.
It was the moment of water gatherings in 2021 when PandoraThe world’s largest jewelry brand has become in size, the first to stop selling mineral diamonds.
“In the United States, about 18 months ago, the size of the laboratory is implanted in the laboratory in loose stones. So if there is no doubt about people’s minds there is a continuous shift, it has been very visible from there, and since then, he continues to grow,” said Pandora CNBC.
“With this kind of valuable suggestions that a diamond cultivated in the laboratory can make, we can actually offer diamonds to more people. So it is not necessarily to see that the total size of diamonds will decrease. We may invite more people to this category.”
With the total economic conditions and increased competition from LGD, the price of the abolished diamonds decreased Almost 60 % Since the peak in March 2022.
A tariff that threatens the point of stability
However, some analysts say the industry is about to reach the installation point between the LGD and the abolished diamonds. “The question that you should ask is, how low prices before consumers see a clear differentiation between the producers,” said Paul Ziminski, an independent diamond analyst.
He added: “I think we have recently started reaching this point that you can buy, as you know, three, four or five carats, which are ridiculous sizes of the engagement ring – you can buy the laboratory version that has grown, as you know, only $ 1,000, while the natural version will be tens of thousands of thousands of dollars. So, I think this difference in price is definitely creating an example.”
In the face of these challenges, some of the main players rethink their strategies.
De Beers, a main player in the diamond industry, said there are signs of absorption of demand in the United States before Christmas and before they reach the induction uncertainty. Instead of investing in the prosperous LGD market, Debeers multiply on natural diamonds.
De Beers recently announced that it will close the LGD JEWELRY BRANDBOX in an attempt to enhance its “natural diamonds in the jewelry sector”.
The CEO of De Beers said in the company’s statement: “The constant value of diamonds implanted in the laboratory in jewelry emphasizes the increasing distinction between these products made from the factory and natural diamonds.”
This image, taken on February 6, 2024, shows the employees working in Greenlab Diamonds, which are laboratory manufacturing jewels that operate on the outskirts of Surat.
Sam Pangaki AFP | Gety pictures
The company said that the closure is in line with the strategy it presented in May last year, to “focus on high -return activities and simplifying work.”
The closure also comes at a time when Anglo America, the parent company of De Beers, is stripping the company and is in the process of searching for potential buyers.
In the current luxurious slowdown, jewelry was a noticeable bright point, especially the high container sector, which is seen as less periodically for the richest customers.
Earlier this month, Richmont The expectations are overcome with the revenues enhanced by the two -digit growth in the group’s MAISons, which includes Cartier, Van Cleef & Arpels and Buccellati.
According to analysts, the key to moving forward in the filled industry is in the correspondence: “You have to remember diamonds, it is a very emotional purchase. It is not a process of purchase. And people love the story behind the creation,” Ziminski said.
“I only think it is up to the industry to provide consumers with the confidence they need if they will spend much more for natural diamonds, they want to make sure it is a natural diamond for sure. I think this should be the priority of the industry at this stage.”
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