Restoring Fairness: The Journey to Tariff-Free European Diamonds in the US Market

The Initial Exemption and Its Rationale

In September 2025, a significant trade agreement between the European Union and the United States first granted natural diamonds processed in Europe an exemption from import duties. This decision was largely influenced by the Antwerp World Diamond Centre (AWDC) and the European Commission, who successfully argued that the absence of a domestic diamond mining and cutting industry in the United States negated the need for protective tariffs against European imports.

Temporary Imposition of a 10% Duty

This tariff-free status was abruptly interrupted in February 2026. A ruling by the US Supreme Court deemed the legal foundation for reciprocal tariffs—the International Emergency Economic Powers Act (IEEPA)—unlawful. Consequently, the US government introduced a new 10% general import surcharge on European polished diamonds under Section 122 of the Trade Act of 1974, leading to a six-month period where European diamonds faced this duty.

Navigating New Legal Frameworks: Section 301 and Forced Labor Concerns

The Section 122 surcharge expired on July 24, 2026. The US then shifted to Section 301 of the Trade Act of 1974, which permits tariffs on countries perceived to lack sufficient measures against forced labor. Initially, the European Union was listed, as its new forced-labor regulations were not yet fully implemented. Unlike its predecessor, Section 301 has no time limit or maximum tariff rate.

AWDC's Advocacy and the Reinstatement of Exemption

The Antwerp World Diamond Centre (AWDC) played a pivotal role in arguing for the exemption of natural diamonds from Section 301. They highlighted the robust traceability and origin-verification systems already in place for natural diamonds, such as the Kimberley Process Certification Scheme and G7 controls, which effectively address concerns about forced labor. The US authorities acknowledged these existing mechanisms, leading to European natural diamonds being added to the list of products exempt from Section 301 tariffs.

Strategic Importance for Antwerp and European Diamond Industry

Karen Rentmeesters, CEO of AWDC, reiterated the enduring validity of the exemption's original justification: the lack of a US domestic diamond industry needing protection. She emphasized that the restored 0% tariff significantly enhances the attractiveness of having natural diamonds cut in Europe, particularly in Antwerp. This reinforces Antwerp's standing as a premier European cutting center, leveraging its unique blend of specialized expertise, advanced cutting technology, and an extensive international network of diamond businesses. In 2024, Belgium's polished diamond exports to the United States alone amounted to $2.1 billion, underscoring the economic impact of these trade policies.