(NewsNation) — People planning on proposing to their significant others in the near future face a new obstacle — the rising price of diamonds.
India has been the largest distributor of diamonds to the U.S. for years, but the market has seen a massive hit following President Trump’s April decision to impose new duties on imports from the country, part of his global rollout of tariffs.
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“I have colleagues who had stuff coming in and missed the boat, and I mean literally the boat by a day, and got these huge tariffs because they were put into effect,” said Steven Grauer of Diamond District Partnership in New York City.
How the tariffs have impacted diamonds prices
Consumer prices for natural diamonds rose 2% to 4% following Trump’s initial announcement of a tariff, according to Paul Ziminsky, a diamond industry expert.
Just last week, the Trump administration hiked up tariffs on imports from India from 25% to 50% as a result of India’s continued relationship with Russia over oil purchases.
Also, before the new tariff, American importers could purchase polished diamonds with relative ease. Those diamonds eventually were placed in rings and necklaces.
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Zimnisky added that prices for natural polished diamonds in the U.S. have increased by upwards of 10% percent year-to-date.
What are the long-term ramifications for diamond rings with the tariffs?
Ya’akov Almor, an international diamond industry expert, believes the 50% tariff will destroy India’s ability to export diamonds.
Diamond rings averaged over $7,160 as of July, which was up nearly 8% from the previous year.
