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Mexico enacts 50% tariff on Indian diamond imports, closing USMCA loophole

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Mexico has implemented tariffs reaching 50% on diamond imports from India, effectively eliminating a strategic workaround under the United States-Mexico-Canada Agreement (USMCA). The 50 per cent tariff is likely to impact small and medium-sized enterprises, rather than larger ones.

Mexico’s Senate ratified the tariff structure on December 10, applicable to imports from India, China, South Korea, Thailand, and Indonesia. The policy takes effect January 1, 2026. Comprehensive tariff schedules remain unpublished.

The measure targets Indian diamond manufacturers utilizing Mexico as a transshipment hub—importing rough or semi-processed stones, conducting minimal polishing operations to establish Mexican origin, then accessing the U.S. market duty-free under USMCA provisions.

The tariff regime nullifies Indian manufacturers’ planned Mexican manufacturing investments. While not legally prohibited, such operations become economically unviable. Small and medium-sized enterprises face disproportionate exposure compared to larger industry players.

The tariffs represent Mexico’s broader trade policy realignment, pressuring Asian trading partners lacking formal free trade agreements toward bilateral negotiations. India maintains a $2.8 billion trade surplus with Mexico.

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DiamondBuzz

Big, Slightly Tinted Diamonds: Object Of Desire In The US Market

Buyers Of 2.5-Carat and Up Pieces Are Increasingly Choosing Stones With J Color Or Lower, Sometimes Much Lower On The Color Scale

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Big, slightly tinted diamonds are suddenly the object of desire in the US — and the industry is asking why.

Buyers of 2.5-carat and up pieces are increasingly choosing stones with J color or lower, sometimes much lower on the color scale, say retailers and traders. That shift signals more than a fashion tweak: it reflects how affluent shoppers now want their diamonds to read as “natural” at a glance.

 Lab-grown gems typically come in the brightest, clearest grades, so a warmly hued, imperfect-looking stone has become a visible badge of authenticity — a deliberate antique vibe in a polished world where synthetics dominate. No surprise: The Knot reports that 61% of U.S. couples now pick lab-grown rings.

A report explores who’s buying these larger, lower-color stones, how cultural moments and celebrities — think Taylor Swift — helped fuel the taste for them, and why antique cuts seem particularly suited to carrying color. The piece also ties this appetite to broader marketing narratives, including De Beers’ push for so-called “Desert diamonds.”

It’s not all doom and gloom for mined diamonds. Larger sizes — especially 2 carats and above and long fancy shapes — have held up better than smaller goods over the past year. The report isolates this rising niche and asks the key question: can these warm-toned showstoppers withstand the continued rise of lab-grown competition?

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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

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