The Diamond Pulse - September 2025

Tariffs, Turbulence and Turnarounds

Tariffs took center stage this month, having an overall adverse impact on the market. Following the US announcement of new 50% tariffs on Indian imports, trade leaders scrambled to act. Representatives from Jewelers of America (JA) and other industry groups headed to Washington to urge the Trump administration to classify diamonds as exempt “critical minerals.” Meanwhile, Indian jeweler Titan opted for a “waitandsee” strategy, holding off on structural changes and watching how tariff impacts would unfold. Swiss watch exports to the US leapt 45% in July as buyers rushed to stock up ahead of tariff increases on timepieces.

The negative trend has had ripple effects throughout the pipeline. Pandora announced it would shutter up to 100 stores in China amid weak demand, and De Beers downsized its diamond sales team as part of ongoing cost-cutting measures. Asian Star’s revenue slumped in the first fiscal quarter, while Mountain Province’s second-quarter losses deepened as rough prices fell. Sarine Technologies and Petra Diamonds both reported revenue drops, and Alrosa continued to struggle as sluggish demand persisted.

Still, the market saw signs of recovery in retail. Michael Hill reported revenue gains thanks to improved summer demand, and Chow Sang Sang expects a significant profit surge. US retail sales rose in July, and Brilliant Earth raised its full-year forecast after beating sales expectations.

Some companies opted to divest business operations. Gemfields sold luxury brand Fabergé for $50 million, while Lucapa Diamond Company found new ownership in industry veteran Dev Shetty’s Dubai-based conglomerate Gaston International DMCC.

Here's your diamond market analysis from RapNet for August 2025

In August, the price for the 1-carat RAPI softened to $4,478 by month's end, down 1.1% from the previous month, when the index had fallen 1.4%. Mid-tier diamonds in the D-H VS category led the decline in the index, falling an average of 1.6%, while the better clarity IF-VVS diamonds fell only an average of 0.9%.

D-F and G-J SI categories saw a sharp decline of an average of 3%, following an even sharper decline in July, during which the average price decline was 4.6%. Low-quality diamonds in the K-M VS-SI category saw an average decline of 0.9%, compared to July when they bucked the trend and rose an average of 1.1%. RapNet inventory levels and searches remained unchanged for the fourth consecutive month. In August, the price gap between the US and India widened as a result of imposing diamond import tariffs of 50%.

RapNet price changes and searches graphs