Diamond rings and bracelets are on display in the display window in the Antwerp of Belgium. (Yuriko Nakavo/Getti Images His Photo
Yuriko Nakao | Getty Images News | Getty pictures
They can be made from hard materials on the earth, but diamonds are especially vulnerable to the aggressive tariff agenda of US President Donald Trump, with their complex supply chains and expensive prices.
The precious mineral is facing a 10% import tariff for the US – half of the global demand for global diamonds. This sector is bracing for additional duties if Trump’s 90 -day break is to end with no new contracts.
“It is very clear that the diamond industry is, globally, is facing the perfect storm of challenges,” Karen Renters, chief executive of the Antwerp World Diamond Center, told CNBC that the tariffs were just “the latest blow.”
Small precious stones cross several boundaries before the store ends in the store. From Botswana or South African mines, to the Middle East or European trade centers, and then cut the hubs before returning to the jewelry manufacturer – there is a long journey before the item arrives at the store. This complex supply chain is that the diamond industry is more susceptible to any business barriers.
Raw materials such as gold and copper have been excluded from US tariffs and the industry is forced to keep the diamonds exclude.
The tenants, who are the head of the 580 -year -old corporation representing more than 1,400 companies at the Diamond District of Antwerp, said: “You can argue that loose diamonds are raw material. You do not wander with a glossy diamond in your hand. You wear it in a piece of jewelry or in a pair of ears.”
The uncertainty of the tariff comes at a time when the luxury industry is already arguing with the decline in demand after the post-posterior boom and the economic decline in China.
Lab-grown diamonds mark the ongoing shift
However, the biggest disruption to the industry is the structure of lab-grown diamonds (LGD). Chemically similar, the stones are impossible to separate from the naked eye. They are selling at 80% discount to the natural version and consumers are taking advantage of cheap prices.
Half of the couple surveyed last year, their engagement ring included a lab-grown diamond, According to a study of Real Wedding of 2025 A knot consisting of about 17,000 couples insights.
When a basin moment is in 2021 PandoraThe world’s largest jewelry brand, according to the volume, was the first to stop selling mined diamonds.
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“With this kind of value assertion offered by the lab grown up, we can really give diamonds to most people. So we don’t have to see that the total diamonds will be reduced. We probably invite most people to the class.”
With poor outdoor economic conditions and rising competition from LGD, the price of mining diamonds has fallen About 60% From the highest in March 2022.
Tariffs threaten to a fixation point
However, some analysts say the industry is closer to reach the point of stabilization between LGD and mined diamonds. “The question you need to ask is that the prices can go short before consumers see a clear difference between two products,” said Paul Gymnisky, an independent diamond analyst.
He said: “And I think we are finally starting to come to the point of buying, three, four or five carrots, which is a ridiculous size for an engagement ring – you can buy a lab raised version, you know, a few $ 1,000 but the natural version is ten more than ten.
In the wake of these challenges, some key players are rethinking their strategies.
De Bers, a leading player of the Diamond industry, said there were signs that there were signs of taking the US demand before Christmas and tariff uncertainty. Instead of investing in the growing market of the LGD, Debirs are doubling on natural diamonds.
De Bears recently announced that it would shut down its LGD jewelry branded lightbox in an attempt to strengthen its commitment to “natural diamonds in the field of jewelry.”
“The constant deteriorating value of lab-grown diamonds in jewelry emphasizes the growing difference between the factory-made products and natural diamonds,” said D Bear’s CEO Al Cook Company.
The photography, taken on February 6, 2024, is a manufacturing laboratory-rich gem of the company on the outskirts of Surat.
Sam Pantaki | AFP | Getty pictures
The company said the closure was to “focus on high-regular activities and facilitate the business” with a strategy presented in May last year.
The closure comes when the original company of Anglo American, D Bears is in the process of diverting the company and looking for potential buyers.
The current luxury is a significant bright spot in slow ornaments, especially when the high-zone category is seen as a low periodic cooking for very wealthy customers.
At the beginning of this month, Rich Beat expectations with revenue from two-digit growth in a group jewelry in the group jewelry in the Mysore Division, which includes Cartier, Van Cleages and Arpels and Busellati.
According to analysts, the key point of the mining industry is to send a message: “You have to remember the diamond. This is a very emotional purchase. This is not a practical purchase and likes the story behind the creation,” Gymnisky said.
“I think it is up to the industry to give them the confidence they need if they are going to spend more than a natural diamond. They want to make sure it is definitely a natural diamond. I think it should be the priority of the industry at this time.”
