The World Diamond Council (WDC) wants the US government to exempt natural diamonds from protectionist tariffs so as not to jeopardise the US’s multibillion dollar jewellery industry.

In a statement, the 76-strong US-based organisation said the US jewellery sector generates more than US$117 billion annually and supports over 200,000 American jobs. Yearly sales, meanwhile, total some US$91.5 billion while domestic jewellery manufacturing and exports contribute around US$15 billion and US$10.5 billion, respectively.

“A tariff on natural diamonds would put all of this at risk,” said WDC.

Natural diamonds are not produced in the US but are critical to a thriving US jewellery trade and the national economy in general. The US is also the world’s largest consumer of natural diamond jewellery and the industry’s growth relies on continued access to goods.

The council said it recognises the US government’s emphasis on fair trade and advocates for policies to bolster the manufacturing sector but argued that tariffs on diamonds are essentially a consumption tax, translating to higher prices for consumers.

“In this spirit, the WDC respectfully urges the US administration to consider granting a targeted exemption for natural diamonds from proposed tariffs and to include them on the Annex II list,” remarked the group.

Annex II schedule of the US outlines specific goods excluded from reciprocal duties.

WDC President Feriel Zerouki also urged governments around the world to "back the exemption reciprocally, ensuring that trade policies support jobs, competitiveness and consumers.” 

The World Federation of Diamond Bourses (WFDB), meanwhile, reinforced calls for a tax relief for natural diamond imports. WFDB President Yoram Dvash said tariffs would harm small, independent retailers, who make up the bulk of the industry in the US, and make jewellery pricier for American consumers.

The WDC statement has been endorsed by the Antwerp World Diamond Centre, the International Diamond Manufacturers Association and the Gem and Jewellery Export Promotion Council of India.