1-carat RAPI down 1.3%.

The diamond market was uncertain in February as tariffs underwent sudden changes. US prices declined; prices of diamonds located elsewhere were up in some categories and down in others.

The Iran war, which affects Israel and Dubai, added to the uncertainty in early March. Dubai is an important trading center for rough and polished.

The US and India reached an agreement on February 2 that reduced duties on Indian diamonds to 25% and was set to abolish the levies completely. On February 20, the US Supreme Court struck down President Donald Trump’s tariff regime. On February 24, he imposed new 10% tariffs. The industry was unsure whether the exemptions it had negotiated under the old system would apply to the new one.

The RapNet Diamond Index (RAPI™) — which tracks round, D to H, IF to VS2 diamonds — fell 1.3% in February for 1-carat goods. The RAPI for 0.30-, 0.50- and 3-carat diamonds increased 1%, 0.3% and 0.2% respectively.

Expectations that tariffs would disappear trimmed the premium that US-located diamonds had commanded. For the 1-carat diamonds that contribute to the RAPI, US prices declined 2.3%, with Indian prices down 0.8%. For 0.30 carats, US prices slumped 14.3%, and India’s increased 1.2%.

Synthetics continue to take market share. They now account for 61% of US engagement-ring center stones, The Knot reported in February.

The Centurion show and Tucson gem fairs signaled good demand for gemstones and high-end diamond jewelry. US retail was positive over Valentine’s Day. Chinese sales were slow during Lunar New Year. Trading at this week’s Hong Kong shows was mixed, with larger stones doing well.

De Beers increased prices of 5-carat and larger rough at its February sight, reflecting shortages and solid US demand for 2-carat and larger polished. Indian manufacturers were hopeful for a recovery following a drop in mining.

However, Anglo American reduced De Beers’ book value from $4.1 billion to $2.3 billion.

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