The diamond industry stops in the middle of a great turbulence caused by US tariffs
The global diamond industry has stopped due to a large -scale commercial confrontation after the introduction of raised rates by the current administration of the United States.
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Diamonds
According to The Financial TimesThe crisis was triggered by the imposition of an import tax of 10% in diamonds entering the United States, which drastically interrupted global supply chains.
Antwerp, one of the world’s largest diamond centers, has been particularly hard. Shipping volumes through the city fell to only one seventh of the previous levels, delivering a severe blow to the International Trade System for Preater Stones.
The Antwerp Diamond Center, a key player in the redistribution and certification of diamonds worldwide, reports a strong decrease in activity.
Previously, it was reported that the Antwerp Center faced serious challenges due to the restrictions on the export of Russian diamonds.
The dramatic impact has been driven not only by rates itself, but also by uncertainty about possible future restrictions based on the country of origin of diamonds.
India, which manages up to 90% of the world’s cut and polishing, also faces a difficult difficult due to the new US rates, further deepening the crisis.
In an attempt to minimize losses, some companies have begun to redirect logistics and relocate operations to alternative diamond centers such as Dubai and Hong Kong.
However, these efforts do not have enough to compensate for the decrease in the world’s largest consumer demand: the United States. The situation is further complicated by the threat of interruption in the US diamond certification system, which is undermining market confidence.
Agitation in the diamond industry stands out how vulnerable the global luxury sectors can be political decisions, partly when it comes to high value goods.
Experts warn that the consequences of American commercial policy could be lasting, pushing market actors to find more resistant supply routes and reduce their dependence on a single region of consumption.
