The Diamond Trade Copes With Tariffs and Sanctions

By Rob Bates | June 30, 2025

U.S. tariffs on trading partners and sanctions against Russian diamonds were significant topics at a panel on international trade challenges, held earlier this month during the World Federation of Diamond Bourses presidents’ meeting in New York City.

“We know the issue of tariffs was going to come our way,” said panelist Feriel Zerouki, president of the World Diamond Council (WDC) and De Beers’ chief trade and industry officer. “Within the trade, everyone wanted something different when it came to tariffs. One task we had was to unite the industry.

“Some wanted exemptions on the rough, some wanted exemptions on the polished. One certain way of not achieving success was for the same industry to call for different things. We called for unity.”

Zerouki said that the industry has largely agreed that rough and polished diamonds should move tariff-free across borders, but noted that it hasn’t been easy for the trade to make its case since “every single industry out there is saying they are special and are asking for an exemption.”

The WDC has worked with producer countries to make sure they deliver the right messages to the Trump administration, said Zerouki.

Another panelist, Sara Yood, president and CEO of the Jewelers Vigilance Committee, added, “I would strongly consider those that are here to communicate with your member of Congress” about the effects of tariffs.

Despite years of engagement, many people in the government were not “well-versed in how diamonds move across borders,” Yood said.

The Court of International Trade initially struck down Trump’s tariff proposals, but an appeals court has stayed that decision.

“The appellate court hasn’t upheld the tariffs,” explained Yood. “They just allow the current tariffs to continue to be collected until the case is heard.

“That case will likely go all the way the U.S. Supreme Court. But even if that case is ultimately upheld, there are other ways that President Trump can levy tariffs that are more time-limited and limited in scope. This issue is not going away,” she said.

Anyone who pays the tariffs will be entitled to refunds if they are struck down again, Yood said. “That shows the need to keep incredibly detailed records.”

Matthew Swibel, vice president of sustainability and social impact for Signet Jewelers, said during the panel that his company has not raised prices due to tariffs “because of the supply chain relationships we have and the relationships we have with a lot of our top suppliers.”

Gaetano Cavalieri, president of CIBJO (World Jewellery Confederation), said he was “not scared” of possible tariffs. If they are imposed, he said, they will ultimately be paid by the consumer, given that the United States has no diamond mines.

The panel also discussed the G7’s ongoing efforts to impose sanctions on Russian diamonds. Panelists said they didn’t know if the Trump administration would continue the U.S.’s participation in those policies.

“[The new administration] has different priorities,” said Ahmed bin Sulayem, chair of the Kimberley Process and executive chair and CEO of the Dubai Multi Commodities Centre. “We see the G6 going one way, we see the United States going another.”

Yood agreed that “clearly the political climate has changed. From my perspective, we’re seeing less engagement with the U.S. government on this issue.”

But she noted that certain prohibitions against Russian diamonds remain in place in the United States, and should be complied with.

Even if Russia’s war with Ukraine ends tomorrow, that doesn’t mean sanctions will, Yood said.

“Sanctions are incredibly difficult to unwind,” she said.

Swibel called some of the original G7 proposals—particularly those that involved a “single node”—counterproductive.

“Putting a sticker on a box was not effective, efficient, or enforceable,” he said. “The definition of diamond traceability is to know what the origin is. What was being proposed did not achieve that.”

On the larger subject of traceability, bin Sulayem noted that the Kimberley Process is trying to digitize its certificates, using a platform called Verifico developed by the United Arab Emirates. But he said it will take time.

“It’s an ongoing discussion,” he said.

“It takes time for one company to develop a digital platform,” Zerouki said. “Here we are talking about [a change that affects] 86 countries. From a trade perspective, we never look for perfection, we are focused on continual improvement.”

The panel was moderated by the author of this article.

Top, from left: Matthew Swibel, Gaetano Cavalieri, Ahmed bin Sulayem, Sara Yood, Feriel Zerouki (photo courtesy of the World Federation of Diamond Bourses)