Starting from November 1, 2025, diamond importers through the Shanghai Diamond Exchange (SDE) will no longer benefit from a preferential VAT or duty refund rate
In general, the cancellation of diamond trading privileges in China (13% of global diamond jewelry sales) may add stress to the already slow local demand for diamonds and stimulate a downward trend in margins for diamond producers.
We confirm our view that it may take considerable time for the global diamond market to recover, given the still high intermediate reserves, the risks of supply discipline violations in 2025-26, and concerns (https://gjepc.org/solitaire/how-us-tariffs-are-impacting-diamond-prices /) regarding the global trade war
