Diamonds, Pearls, Gemstones Could Be Exempt From Tariffs

Pair of Natural Basra Pearls

Unset diamonds, gemstones, and natural pearls may be exempt from Trump administration tariffs, provided they are imported from countries that have signed trade deals with the United States, according to a new executive order issued Sept. 5.

The products, previously subject to duties, are listed in a new annex, called “Potential Tariff Adjustments for Aligned Partners,” that accompanied the order. The annex lists natural products that are either not found or available only in limited quantities in the United States, such as coffee and mangoes.

“I may be willing to provide a zero percent reciprocal tariff rate to products listed in the Annex,” Trump said in the order.

For the covered products to be allowed in duty-free, the exporting country must have a final agreement with the United States. At press time, India—currently subject to 50% tariffs—does not have a new trade agreement with the United States, nor do any of the major diamond-producing nations in Africa. However, Japan, a prominent pearl producer, may have one.

The possible tariff exemptions don’t apply to cultured pearls (only natural pearls), nor do they apply to finished jewelry.

For more information, check the JVC’s tariff tracker.

SOURCE: https://www.jckonline.com/editorial-article/diamonds-pearls-gemstones/