Shifting Ground: US Tariffs Disrupt Diamond Grading at GIA

The diamond industry is facing a significant disruption as new US tariffs trigger changes in the way the Gemological Institute of America (GIA) operates. In response to recent import duties of up to 27% on goods from countries such as India, South Africa and the European Union, the GIA has temporarily stopped accepting diamonds at its international laboratories that would need to be shipped to the United States for grading or certification.

This decision highlights the far-reaching impact of trade policy on the global gemstone market. Traditionally, many clients from around the world have relied on GIA’s American facilities to certify their stones, given the institute’s status as one of the most trusted authorities in diamond grading. However, with tariffs now applying even to goods not intended for sale in the US, international clients face unexpected additional costs and logistical complications.

Industry experts have pointed out that mechanisms such as “Temporary Importation Under Bond” (TIB) could, in theory, offer relief by allowing goods to enter the US temporarily without full duties. Yet in practice, many argue that there is no clear exemption for diamonds shipped specifically for grading purposes, leaving importers caught between compliance requirements and higher costs.

The GIA has stated that it is reviewing its operations and working to provide clarity for clients, while at the same time urging them to remain fully compliant with regulations during this uncertain period. The consequences could be profound: from shifting grading demand to other countries, to accelerating the development of alternative certification models outside the US. One thing is certain: this development has the potential to reshape not only where diamonds are graded, but also how the global diamond trade adapts to a new regulatory landscape.

Image credits: Architizer