Tariffs Turmoil: Does EU Zero Rate Sill Apply?

(IDEX Online) - Diamantaires in India and Belgium are still grappling with uncertainties following last month's flip-flop on US tariffs.

Confusion reigns over whether or not the newly-introduced zero rate for EU polished diamonds still applies.  

The Supreme Court struck down reciprocal tariffs imposed by President Donald Trump as unconstitutional on 20 February. He immediately responded with blanket tariffs of 10% for all trading partners.

Industry bodies in both Surat and Antwerp are assessing the move, which represented a significant reduction for Indian diamond exports (down from 50%) and a presumed hike for Belgium, which had previously enjoyed a zero-rate tariff.

"The recent developments around the US tariff framework have created a degree of uncertainty for global gem and jewellery trade," said Pradeesh Gopalan, of India's Gems and Jewellery Export Promotion Council (GJEPC).

He said there was " limited clarity" on the final tariff for natural diamonds, referencing Belgium and the other EU countries, which were granted a zero-rate on polished diamonds from September 2025.

"Any differential tariff structure that places competing centres such as Belgium at a lower or zero duty could impact India's competitiveness in the diamond supply chain," he said.

It is, however, unclear whether that zero rate still applies. "There is no confirmation on whether EU-polished diamonds are still tariff-exempt," said the AWDC (Antwerp World Diamond Centre) in its latest message to members.

" As of the information available on 26/02/2026, one should assume a 10% (not 15%) tariff on ALL diamonds for the next 148 days," it said. "This is until we receive clear confirmation otherwise."

It said it was actively monitoring the situation and would share confirmed information as soon as it becomes available.