India Sees Challenges, Antwerp Sees Opportunity Under New U.S. Tariffs

By JCK News Desk | July 28, 2026

The latest U.S. tariffs are drawing sharply different reactions from two of the world’s diamond centers, Belgium and India.

In Belgium, Antwerp’s diamond-polishing trade—which exports over $2 billion worth of goods to the United States annually—is celebrating the restoration of an exemption for natural diamonds cut in Europe. The exemption had been established for the wide-ranging tariffs President Trump announced in early 2025 but was nullified when the Supreme Court ruled against those tariffs earlier this year.

In India, officials say the country’s 10% tariff puts it at a competitive disadvantage, because European-cut diamonds are entering the U.S. market without the additional duty. The new duties are “not at all justified,” said Kirit Bhansali, chairman of India’s Gem & Jewellery Export Promotion Council (GJEPC).

Tariffs of 10% or 12.5% were instituted on about 60 countries, effective last Friday. The Trump administration is citing alleged violations of Section 301 of the Trade Act of 1974, regarding forced labor within the supply chain, as the basis for the new levies.

“We categorically reject any implication that India’s gem and jewelry sector is linked to forced labor,” Bhansali said. “Repeated studies have been commissioned that demonstrates the industry’s long-standing commitment to responsible sourcing, worker welfare, and ethical business practices.”

GJEPC urged relief for natural diamonds and colored gemstones under an Annex III exemption to the new tariffs, noting that the 10% rate is added to India’s existing most-favored-nation tariff of 5.5%–6% on jewelry exports to the U.S.

The trade group acknowledged that India fared better than some “competing manufacturing and trading hubs”—including China, Thailand, Turkey, the United Arab Emirates, Israel, and Vietnam—that were assessed the higher 12.5% rate. GJEPC also stated that lab-grown and synthetic diamonds remain subject to tariffs.

As for the response from Antwerp’s main industry association, Karen Rentmeesters, CEO of the Antwerp World Diamond Centre (AWDC), said in a statement, “The restored 0% exemption once again makes it more attractive to have natural diamonds cut in Europe…. The fact that natural diamonds cut in Europe are once again exempt from these U.S. import tariﬀs strengthens Antwerp’s position as Europe’s cutting center.”

In pushing for the exemption, AWDC had argued that diamonds already operate under extensive origin-verification and compliance systems, including Kimberley Process and G7 regulations.

The Section 301 tariffs replaced a temporary global tariff program Trump had implemented after the Supreme Court decision. While these latest tariffs include certain product-specific exemptions, they cover 99.4% of U.S. imports, according to the Office of the U.S. Trade Representative. Reuters has reported that the Trump administration said it is pursuing other Section 301 investigations, related to manufacturing overcapacity and other trade practices, that could lead to additional tariffs.

(Photo: Getty Images)

The JCK News Desk uses AI to help research and produce the first draft of articles. This story was then reviewed by staff writer David Blomquist.