The tariffs announced by U.S. President Donald Trump on April 2 sent shockwaves through the diamond industry and the global economy. The new import tariffs will affect every aspect of trade, from mining to retail.

Nearly all countries/regions and almost all products are subject to a 10% tariff, effective April 5. On April 9, Trump postponed by 90 days the implementation of higher reciprocal tariffs on certain countries—just as these tariffs were about to take effect. This has given India some breathing room, as it had been facing tariffs of up to 26% on its goods.

The main exception is China—Trump imposed tariffs of 145% on Chinese goods. This has intensified the trade war with Beijing, as the Chinese government has responded by imposing tariffs of 125% on U.S. products. The initial reaction to the tariff policies targeting the diamond industry was a market freeze. Companies outside the U.S. saw their sales come to a standstill. Meanwhile, U.S. businesses experienced some demand as they sought to secure goods before the higher tariffs took effect.

The raw stone industry is starting to panic, worried that demand for finished products will dry up. If manufacturers can get their inventory onto planes before the tariff deadline, they’ll shift that inventory to their U.S. subsidiaries. Dealers in New York aren’t sure how to adjust their prices and are waiting for others to take the first step. No one knows exactly how trade shows, memos, and ratings work.

In the days that followed, certain perspectives became clearer. For example, the industry began to familiarize itself with the Temporary Import Bond (TIB) mechanism used for trade shows and shipments to laboratories. However, people remained deeply concerned and confused about the new regime.