The trade agreement of August 1st between the United States and the European Union has introduced a significant shift in import tariffs, with direct implications for Belgium’s diamond industry. As of August 7, the United States will raise its general import tariff on EU goods from 10 percent to 15 percent.
Although the agreement, reached on July 27, ends a long period of transatlantic trade uncertainty, it remains a principle agreement. Final details are still pending approval by all 27 EU Member States. It is not yet confirmed which products may be excluded from the increased tariff.
Among the sectors most affected is the diamond industry, and in particular, natural polished diamonds exported from Belgium. In response, we as AWDC have intensified our lobbying efforts, working closely with both Belgian and European policymakers to secure a specific exemption for these goods.
We are doing everything possible to ensure this trade deal turns out as favorably as possible for Belgium’s diamond sector. An exemption for polished diamonds is both logical and essential for the sustainability of this industry.
We argue that the rationale for such a tariff is weak. The United States has no domestic diamond mining and only minimal polishing capacity. As a result, there is no local industry to protect, while the American market depends heavily on imports, particularly from Belgium. The 15 percent tariff, therefore, offers no strategic advantage to the United States, but could unnecessarily disrupt established trade flows.
Key points of the tariff update:
- The general US import tariff on EU goods will rise to 15 percent starting August 7.
- The trade agreement remains in principle form; its implementation is subject to final approval by EU member states.
- There is no official list yet identifying which specific goods may be exempted from the tariff.
- For diamond trade, the tariff applies based on country of origin:
- For rough diamonds: the country where they were mined.
- For polished diamonds: the country where they were polished.
- Polished diamonds exported from the United States to the EU are not on the EU’s countermeasure list, meaning they will not be subject to retaliatory tariffs.
We continue to monitor the evolving situation closely and remain actively engaged in diplomatic and policy discussions. The goal is to mitigate the impact of the tariff and safeguard Belgium’s leadership position in the global diamond trade.
Updates will follow as more information becomes available and the trade agreement moves toward ratification.
