New 10–12.5% Tariffs Hit Lab-Grown Diamond Sourcing

Published

04.08.2026

Author: Alex K., CMO at Labrilliante

What you need to know:

On July 24 a new slate of tariffs took effect on imports from 60 countries, with rates from 10% to 12.5%
Lab-grown diamonds are not on the exemption list — unlike loose natural diamonds, which are exempt from several major sourcing countries, including the EU
India, a major hub for lab-grown diamond cutting and manufacturing, falls under the new 10% tariff

A new round of tariffs went into effect at midnight on 60 countries the Trump administration says haven't done enough to address forced labor in their supply chains. The U.S. Trade Representative announced the rates - 10% to 12.5% - Thursday night, just as the temporary 10% across-the-board tariffs from February were set to expire. They're being enacted under Section 301 of the Trade Act of 1974, a different legal basis than the tariffs the Supreme Court struck down back in February

Here's the detail that matters most for anyone in the lab-grown diamond business: precious metals are broadly exempt, and loose natural diamonds are exempt from several countries - but lab-grown diamonds are not on the exemption list at all.

Why This Hits Lab-Grown Sourcing Specifically

Buried under the rate tables is a real supply-chain gap. Natural diamonds get carved-out treatment in a lot of places lab-grown stones don't. The European Union, for instance, secured a full exemption for rough and loose polished diamonds - a win the Antwerp World Diamond Centre called "significant news" in a statement circulated Friday. AWDC CEO Karen Rentmeesters said the restored exemption makes it more attractive to have natural diamonds cut in Europe, pointing to Antwerp's cutting capacity and international network.

Lab-grown diamonds don't get that break. And India — one of the largest hubs for lab-grown diamond cutting and manufacturing - is on the list of countries facing the new 10% tariff.

While a 10–12.5% rate isn't the kind of number that reshapes a category on its own, it's exactly the kind of cost that quietly erodes margin if retailers aren't planning for it in their sourcing and pricing.

Who's Affected, and by How Much

The 10% tier covers Canada (outside USMCA-exempt goods), India, Mexico (outside USMCA goods), Pakistan, Sri Lanka, and the U.K. The 12.5% tier covers Angola, Australia, China, Colombia, Hong Kong, Israel, South Africa, Thailand, Turkey, the UAE, and Vietnam. Goods from Switzerland, Japan, and South Korea face a 12.5% minimum stacked on top of existing tariffs, and the EU and Taiwan face a 10% minimum under the same stacking rule.

Canada is its own story. Diamonds are technically exempt from the new 10% tariff under USMCA, but National Jeweler noted that President Trump separately announced a 50% tariff on a wide range of Canadian imports - including loose polished diamonds - starting in mid-August, unrelated to the forced-labor tariffs.

Brazil ends up with the steepest combined rate: the new 12.5% tariff stacks onto a previously announced 25% tariff, for a total of 37.5% - though rough gemstones from Brazil remain exempt.

What Retailers Should Do Now

This isn't a category-ending development, but it is a planning one. Jewelers and buyers sourcing lab-grown diamonds should factor these rates into landed cost now rather than after the next invoice arrives. Diversifying supplier countries, confirming country-of-origin documentation, and asking suppliers directly how they're absorbing or passing along the new rates will matter more over the next few months than it has in a while.

USTR is also running a separate Section 301 investigation into alleged "overproduction" that could bring additional tariffs on 16 countries, including India, China, Thailand, the EU, and Switzerland - worth watching, since it would layer on top of what's already in effect.

Looking Ahead

Expect sourcing costs to be a bigger part of the retailer conversation through the rest of the year, especially for anyone buying lab-grown stones cut or manufactured in the 60 affected countries. LaBrilliante is watching these rates closely and adjusting sourcing to keep pricing predictable for our retail partners - reach out if you want a clear read on how this affects your next order.