Diamond market contraction to worsen under Tariff plans

Econsult, a US based consultancy firm, has concluded that diamond market prices are set to rise under the Trump administration, mainly driven by proposed reciprocal tariff plans. Currently, Botswana’s diamond exports to the US face a 10% tariff, whether direct or indirect, up from zero.

From July, unless the proposed tariff regime changes, they will face tariffs of 37% if direct from Botswana or 26% if indirect via India. The impact will be to raise diamond prices, which will reduce demand, and/or reduce profit margins in the industry, researchers noted.

The impact on demand is particularly worrying, especially given the weakness of the diamond market in recent years, and the hopes for recovery in 2025. Economists have predicted that the rough market will further plummet and endure more strain if he continues to steer markets into trade wars.