De Beers CEO “Confident” U.S. Tariffs Will Exempt Diamonds

De Beers CEO Al Cook is “very confident” the United States will eventually exempt natural diamonds from import tariffs, he told CNBC on May 27.

“Natural diamonds are not found in the United States, and they never will be,” Cook (pictured) said. “There are no U.S. diamond mining jobs to protect. So we believe that the United States will exempt diamonds from tariffs, because in effect, the only effect of diamond tariffs is to increase diamond prices for U.S. consumers.

“We’re also very pleased and very impressed by the leadership that that the Indian government has shown in their negotiations with the United States on tariffs, led by commerce minister [Piyush] Goyal, and his strategy of engaging with the United States is proving very successful,” Cook continued. “So we are very confident that he will create a United States–India tariff deal that also reduces and removes tariffs from diamonds.”

The World Diamond Council hopes to make a deal with governments worldwide to have natural diamonds exempted from tariffs, and the American Gem Trade Association is meeting with members of Congress to have colored gemstones exempt from tariffs.

In the CNBC interview, Cook said there has been “some growth” this year in U.S. sales of natural diamond fashion jewelry but “small declines” in bridal jewelry. Sales at U.S. independent retailers grew 8% year-over-year in April, he said.

“[There’s been] some signs of growth, but it’s going to be a long slow recovery for the diamond markets,” said Cook.

He also noted that De Beers is introducing Forevermark as a retail brand in India.

“That will be launching in Mumbai and Delhi and expanding to 100 stores,” Cook said.