Possible U.S. tariff hike could lead to investments in cutting in origin nations

BRASILIA, Brazil – A possible rise in U.S. tariffs after expiration of the present 90-day pause, could trigger investment in cutting and polishing in gemstone origin countries, Sara Yood, President, CEO and General Counsel at the Jewelers Vigilance Committee, told the ICA Congress.

If tariffs, presently held at 10 percent, revert to higher rates in key gemstone manufacturing countries India and Thailand, more investments in crafting operations in gemstone origin countries may follow, Ms Yood said in a question-and-answer session.

“Businesses may look to keep more cutting in mining countries, especially if those mining countries have a preferential tariff rate,” she said.

Ms Yood noted that Gem Legacy was presently developing a campus for training in faceting in Arusha, Tanzania.

Doug Hucker, ICA CEO, said it would be tough to move cutting operations to origin centres at scale.