European response to American steel tariffs spares Belgian diamond sector

The member states rallied behind a proposal from the European Commission to impose additional tariffs of 10 to 25 percent on a range of American export products. The list includes, among other things, engines, textiles, plastic articles, electrical household appliances, and beauty products, as well as agricultural products such as soybeans, citrus fruits, and poultry.

The measures constitute the European response to the American tariffs of up to 25 percent on steel and aluminum that have been in effect since March 12. They are the first counteraction from the European side in the unprecedented tariff offensive launched by American President Donald Trump.

The Antwerp diamond umbrella organization AWDC is pleased that, for the time being, no import tariffs are being levied on polished diamonds from the United States. “European import tariffs could cause significant damage to the diamond sector in Belgium, without causing substantial pain to the United States,” the umbrella organization states.

In this sector, import duties are applied based on the origin of a product. For polished diamonds, that is the country where the stone was polished, which rarely happens in the United States. In practice, the Belgian sector is particularly happy that many administrative procedures and delays are avoided.

“It is typical for our sector that diamonds are sent back and forth multiple times between Belgium and the United States,” explains CEO Karen Rentmeesters. “This is necessary, for example, to obtain a certificate from a major diamond lab. Without this decision, those same diamonds would be subject to import tariffs not once, but twice: both when entering America and when returning to Europe.”

The United States is an important trading partner, accounting for 16 percent of Belgian diamond trade. In total, the trade value amounts to nearly 4 billion dollars in polished diamonds.