() People planning on proposing to their significant others in the near future face a new obstacle — the rising price of diamonds.
India has long been the leading supplier of diamonds to the U.S., but the market took a significant blow after President Trump decided in April to introduce new tariffs on imports from India as part of his broader tariff strategy.
“Some of my colleagues had shipments that literally missed the cut-off by a day and ended up incurring these substantial tariffs when they came into effect,” explained Steven Grauer of Diamond District Partnership in New York City.
How the tariffs have impacted diamonds prices
As a consequence of Trump’s initial tariff announcement, consumer prices for natural diamonds increased by about 2% to 4%, according to diamond industry expert Paul Ziminsky.
Recently, the Trump administration doubled tariffs on imports from India from 25% to 50%, citing India’s ongoing ties with Russia regarding oil purchases as the reason.
Prior to the implementation of the new tariff, American importers had little difficulty acquiring polished diamonds, which were then used in the creation of rings and necklaces.
Zimnisky added that prices for natural polished diamonds in the U.S. have increased by upwards of 10% percent year-to-date.
What are the long-term ramifications for diamond rings with the tariffs?
Ya’akov Almor, an international diamond industry expert, believes the 50% tariff will destroy India’s ability to export diamonds.
Diamond rings averaged over $7,160 as of July, which was up nearly 8% from the previous year.
