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US Jewellery Industry faces $117 Billion threat amid proposed diamond tariffs

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The World Diamond Council (WDC), representing the global natural diamond value chain, has raised concerns over proposed U.S. tariffs that could place the $117 billion American jewellery industry at significant risk. In a formal appeal, the WDC urged the U.S. Administration to exempt natural diamonds (HS Codes 7102.10 and 7102.31) from the ongoing tariff review and include them in Annex II, citing their critical role in the nation’s economic and manufacturing sectors.

Natural diamonds, though not produced in the U.S., are essential to the health of the domestic jewellery market — a sector supporting over 200,000 American jobs and generating over $91.5 billion in annual sales. The combined impact of jewellery manufacturing and exports adds another $25.5 billion to the economy each year.

The WDC warns that tariffs on natural diamonds would effectively act as a consumption tax, raising prices on popular items like engagement rings and anniversary jewellery, placing additional financial strain on American families. Retailers are already experiencing inventory concerns, with inflationary pressures beginning to impact consumer prices.

“A tariff would destabilize the supply chain, weaken U.S. manufacturing competitiveness, and increase costs for consumers,” said Feriel Zerouki, President of the World Diamond Council. “We support the U.S. Government’s goal of fair trade, but urge an exemption for natural diamonds to protect jobs, competitiveness, and consumer access.”

The United States is the world’s largest consumer of natural diamond jewellery. The WDC emphasized that continued access to these goods is vital to preserving the innovation, craftsmanship, and entrepreneurship that define the American jewellery industry.

WDC members are actively engaging with U.S. officials, calling for a collaborative resolution that supports fair trade without undermining one of America’s most valuable consumer markets.

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CIBJO Backs ‘synthetic’ As Sole Label For Man-Made Diamonds

CIBJO’s Laboratory-Grown Diamond Committee, Told Delegates That “Synthetic” Remains The Primary Term Recognized By Consumers, Despite A Formal Push From The Sector’s Steering Committee To Defer The Ruling and Authorize “Laboratory-Grown.”

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The World Jewellery Confederation (CIBJO) has recommended “synthetic” as the only acceptable descriptor for non-mined diamonds, rejecting calls from trade leaders to permit the term “laboratory-grown,” the organization said on Monday.

The decision, finalized at the closing session of the 2026 CIBJO Congress, deepens a global divide over gemstone terminology at a time when manufactured stones are rapidly eroding the market share and pricing power of mined gems.

CIBJO’s Laboratory-Grown Diamond Committee, told delegates that “synthetic” remains the primary term recognized by consumers, despite a formal push from the sector’s steering committee to defer the ruling and authorize “laboratory-grown.”

CIBJO’s move aligns with a growing regulatory push in several major markets. France restricted terminology to “synthetic” in 2024, Russia followed suit in June, and the London Diamond Bourse endorsed the single descriptor on Sunday. In May, the African Diamond Producers Association also tightened descriptor rules to shield the natural diamond trade.

In contrast, regulators and retailers in the United States and India have favored consumer-friendly phrases such as “lab-grown” or “laboratory-grown.” The commercial stakes are particularly high in the U.S., where synthetic stones now account for more than half of all engagement ring sales by volume, applying severe downward price pressure on natural rough and polished stones.

CIBJO, which began moving to strike “lab-grown” from its influential Diamond Blue Book standards last year, warned that the diverging legal frameworks are leaving the global market increasingly fragmented.

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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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