Diamond industry in the crisis

Diamond merchants warn that the 82 billion dollars industry “stops” due to Donald Trump’s tariff and global trade war, with shipments through the Antwerp dealer center center to about seven usual levels.

Trump’s comprehensive definitions include a 10 percent tax on diamond imports in addition to the changing “revenge” duties proposed according to the country of origin, although many other minerals such as gold and copper are investors of measures.

The United States is the largest consumer of diamonds in the world, which represents about half of the global demand, but it must import it all because it does not contain local diamond mines.

Although the White House has “stopped” the alleged retaliatory definitions for 90 days, the foundation tariff of 10 percent is already valid and remains in place. Unconfirmed expectations have had a chilling effect on gemstones, as well as in the broad polishing industry in India.

Antwerp diamond shipments, one of the most busy stones in the world alongside Dubai, reached a “stop” after Trump announced the new global definitions this month, according to Karen Rintaster, CEO of the Antwerp Diamond Center.

She said that the matter made “no meaning” to include diamonds in the American definitions, and compared the unrest in the globalization industry very much with the caused by the Corona virus.

Rentmeesters estimated that daily charges were just the seventh of normal levels. “It disrupts the industry,” she said. “Everything literally stops.”

The diamond industry is already suffering from several difficult years, as it reduced the epidemic and competition from the implanted diamonds in the laboratory.

“The diamond industry is not in a good place,” said Richard Chitwood, an old warrior in industry and president of Trustco Resources.

He added, “If you suddenly put a customs tariff, you are hardening it,” saying that the diamonds will not bring manufacturing to the United States.

Model Diamonds are transferred all over the world several times before it ends in the customer’s hands – between the countries of the producer such as Botswana, trading corridors including Dubai and polishing centers in India.

The only part of the supply chain in the United States is the process of issuing certificates. The largest certified agency in the world, the American gemstones, is located in California and employed 3200 people.

The regular process of diamond flying inside and outside the United States to obtain certificates is now threatened.

Pritesh Patel, GIA Executive Director of Operations, said it enhances its services abroad through its eight international offices due to the definitions.

“We are specifically expanding services in Dubai and Hong Kong to accommodate some effect,” Patel said. “The customs tariff shows a lot of uncertainty in the entire supply chain from one side to the end.”

He added that Gia was studying whether the diamond that was brought to the United States to issue purely certificates could obtain an exemption from definitions through a temporary import association or a free trade zone.

The World Trade War is likely to reach the total demand for diamonds, which hardly appeared for several years, as well as the creation of a major dislocation in the supply chain, according to analysts.

India, which treats the vast polishing industry, can be affected by more than 90 percent of diamonds in the world, can be affected in particular.

Because the final diamonds are considered “an arose” in the countries that were hacked, the export industry in India with billions of dollars will reach 27 tariffs for each tariff proposed by the United States on Indian goods, unless the two countries have reached a deal to avoid customs tariffs.

“Increased is a problem,” said Paul Ziminski, an independent diamond analyst for global diamond demand. “When people are not sure, they hesitate to buy, and they hesitate to invest. I think there will be some influence on the estimated elements of the consumer such as luxury, such as diamonds.”

Malik de Birz Anglo -American Diamond -producing giant value has been written by $ 4.5 billion over the past two years due to the weak market conditions. Anglo is preparing to recycle De Beers in a preliminary general offer later this year.

New York’s SIGNET jewelry, which is the largest retail store in the world’s Diamond jewelry, is wrestling with customs tariffs.

The company informed its suppliers on April 4 that it will not pay for any new introductory effects “at all” on the current purchase orders, which means that it will require its suppliers abroad to pay duties.

In a message that FT saw, Signet also urged its suppliers to charge the current requests to the United States as soon as possible, “with a focus on April and May.”