United States imposes tariffs on South African natural diamonds

Edited by: Fatima Babadina

South Africa’s natural diamond industry is facing a major setback after the United States imposed a thirty percent tariff on its exports, prompting urgent discussions among local stakeholders. On Tuesday in Pretoria, the South African Minister of Mineral Resources and Energy convened a crisis meeting with producers, urging unified action in the face of declining demand and growing competition from synthetic diamonds, especially in Western markets.

Unlike gold, platinum group metals, and coal—which remain exempt from the new US tariff regime—natural diamonds are now fully subject to the steep duties. This development threatens one of South Africa’s historic export pillars, as the US is its second largest trading partner after China. The minister highlighted the increasing market share of lab-grown stones, now making up about a quarter of American diamond sales, warning of a serious loss in competitiveness for South African gems.

In response, the government is calling for increased output, greater value addition through local cutting and polishing, and an internationally coordinated marketing effort to reposition natural diamonds in the premium segment. The minister emphasized that enhancing local beneficiation is a strategic priority, as the sector navigates challenges from the rise of synthetic alternatives, shifting consumer preferences, and mounting trade barriers. South Africa, known for iconic mining sites like Kimberley and Cullinan, now faces the urgent task of safeguarding its diamond legacy in a rapidly changing global landscape.