The diamond industry is working to reduce tariffs and update its marketing strategies as global trade tensions and evolving consumer preferences transform the market. Two key figures—David Bonaparte, president and CEO of Jewelers of America, and Ronnie VanderLinden, president of the World Diamond Council—recently discussed their efforts on a podcast, outlining meetings with U.S. officials and discussions at the World Diamond Congress in Singapore.
Bonaparte and VanderLinden traveled extensively over the summer, moving between Asia and Washington, D.C., to advocate for the sector. Their July visit to Singapore focused on diamond marketing, while their later trip to the U.S. capital aimed to secure tariff exemptions. During the podcast, they noted that U.S. Trade Representative Jamieson Greer suggested diamonds might qualify for relief from existing tariffs, though no final decision has been reached.
Marketing diamonds in a changing market
The Singapore discussions highlighted a key challenge: how to position diamonds in an era where lab-grown stones and shifting consumer values are altering demand. The industry has traditionally relied on marketing tied to luxury and romance, but younger buyers now prioritize sustainability, affordability, and personalization.
This shift isn’t just about competing with lab-grown diamonds. It involves redefining what a diamond symbolizes. The push for tariff relief is part of a broader effort to make natural diamonds more accessible, particularly as prices for gold and other precious metals remain high. If tariffs decrease, retailers could lower prices, potentially reigniting interest in mined stones.
Spinelli Kilcollin has adopted this shift with a trade-in program encouraging customers who own lookalike or lab-grown pieces to upgrade to natural diamonds. These initiatives show the industry attempting to connect with consumers through more flexible pricing.
Lobbying for trade relief
The meeting with Greer in Washington provided a rare chance for the industry to present its case directly to policymakers. Tariffs on diamonds have long been controversial, with critics arguing they raise costs without benefiting domestic producers. Since the U.S. doesn’t mine diamonds commercially, the tariffs mainly affect importers, retailers, and consumers.
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Their lobbying efforts coincide with the Biden administration’s review of trade policies, especially those impacting luxury goods. While diamonds aren’t a major political priority, the industry’s argument—framing them as part of broader economic concerns like small business support and job preservation—could gain traction.
Trade policy changes slowly. Even if Greer supports the exemption, it would face bureaucratic challenges and potential opposition from other sectors. For now, the industry remains in limbo, though some retailers have adjusted their strategies by increasing inventory of lab-grown diamonds or alternative gemstones to offset price volatility.
The podcast also covered other industry milestones, including the 120th anniversaries of Jewelers of America and National Jeweler. Celebrations included revisiting a 1910 article that speculated on how automobiles might impact jewelry sales. The comparison feels timely, as the industry now faces its own disruptions—from lab-grown diamonds to AI tools for gemstone identification.
VanderLinden and Bonaparte didn’t provide a detailed plan for adaptation, but their travels indicate an awareness that change is needed. Whether through tariff relief, updated marketing, or new materials, the diamond trade is attempting to maintain relevance in a market where its dominance is no longer assured.
The full discussion is available on the My Next Question podcast, accessible on Spotify, Apple Podcasts, and the National Jeweler YouTube channel.
Leadership transitions are also underway, with Mike Alexander set to take over as CEO of Jewelers Mutual later this year.
