The World Diamond Council (WDC) wants the U.S. government to exempt natural diamonds from protectionist tariffs that could jeopardize the multi-billion dollar U.S. jewelry industry.


The U.S. jewelry industry generates more than $117 billion in revenue annually and provides jobs for more than 200,000 Americans, the organization of 76 U.S. companies said in a statement. Sales total about $91.5 billion annually, with the country's jewelry manufacturing and exports contributing about $15 billion and $10.5 billion, respectively.The WDC emphasized that "tariffs on natural diamonds would jeopardize all of this."


Natural diamonds are not produced in the U.S., but are vital to the booming U.S. jewelry trade and the national economy as a whole. At the same time, the U.S. is the world's largest consumer of natural diamond jewelry, and the industry's growth depends on the continued flow of goods.


WDC said it understands the U.S. government's emphasis on fair trade and advocates policies to support the manufacturing sector, but believes that the current tariffs on diamonds are essentially an excise tax that will result in consumers paying higher prices.


WDC continued, "In light of this, WDC respectfully requests that the U.S. government consider targeted exemptions from tariffs on natural diamonds and include them on the Annex II list."


The U.S. Annex II list lists specific goods that are excluded from reciprocal tariffs.


WDC President Feriel Zerouki also urged governments around the world to "support reciprocal exemptions to ensure that trade policies support jobs, competitiveness and consumers."


Meanwhile, the World Federation of Diamond Bourses (WFDB) has backed calls for duty-free imports of natural diamonds. Yoram Dvash, the association's president, said the tariffs would hurt small, independent retailers, who make up the bulk of the U.S. diamond industry, and ultimately pass the tax on to U.S. consumers.


WDC's statement was supported by the Antwerp World Diamond Center (AWDC), the International Diamond Manufacturers Association (IDMA), and the Gems and Jewelry Export Promotion Council of India (GJEPC).