Last week, as the Trump administration announced a new round of global tariffs, natural diamonds were once again excluded from the measures. This exemption follows continued efforts by European diamond industry representatives, particularly the Antwerp World Diamond Center, which controls much of the world’s rough and polished diamond trade.

The Antwerp World Diamond Center, based in Belgium, played a key role in securing the carve-out. The center, which handles about half of the world’s polished diamonds and most of its rough stones, had earlier presented an 18-karat gold ring studded with diamonds and precious stones as a gift to President Donald Trump. The ring, designed to commemorate the 250th anniversary of American independence, features elements referencing Mr. Trump’s presidency and was publicly acknowledged by the president during a celebration event in Brussels.

Although U.S. trade officials say the gift had no bearing on tariff decisions, the diamond industry’s exemption has raised questions about the criteria used to grant such exclusions. The latest tariffs, announced on July 24, target imports from more than 80 countries accused by the administration of failing to enforce laws against forced labor. These tariffs, ranging from 10 to 12.5 percent, exclude several critical sectors including natural diamonds, oil and gas, copper, certain chemicals, and machinery used in technology manufacturing.

White House spokesman Kush Desai confirmed the diamond industry’s exemption stems from a trade agreement with the European Union reached the previous summer, emphasizing the administration’s commitment to upholding that deal. Officials from the Office of the United States Trade Representative said they had no knowledge of the diamond ring gift and denied any influence on the exemption.

The Trump administration initially took a hardline stance on tariff exclusions, warning against a proliferation of carve-outs that could undermine tariff effectiveness. However, officials have recently adopted a more nuanced approach, exempting products deemed essential to U.S. supply chains or those unlikely to undermine tariff goals. This includes raw materials, agricultural inputs, and technology-related machinery. Similar exemptions were granted following negotiations with multiple trading partners, including the EU, Mexico, Canada, and Taiwan.

Trade analysts note that roughly half of U.S. imports affected by forced labor tariff rules have been exempted under the latest list. Key exemptions involve raw materials such as metal scrap used in steel and aluminum production, certain farm chemicals, and equipment for advanced manufacturing.

However, critics caution that many products associated with forced and child labor remain exempt. These include textiles, coffee, gold, and minerals mined in regions with documented labor abuses, such as the Democratic Republic of Congo and Xinjiang, China. Some experts argue that broad exemptions undermine the administration’s stated goal of combating forced labor in global supply chains.

Human rights advocates highlight that products like paprika—some of which has been linked to forced labor in Xinjiang—are included among tariff exemptions. The U.S. Labor Department regularly identifies numerous commodities tied to forced labor, yet many continue to evade tariff penalties.

U.S. officials maintain that their trade mandate focuses on encouraging foreign governments to enforce their own labor laws rather than policing labor practices directly through tariffs. They contend these tariffs represent the most extensive U.S. labor rights action to date in trade policy.

The textiles sector faces additional scrutiny after the administration announced a new program allowing certain Asian countries to export garments tariff-free provided they use U.S. cotton, intending to reduce dependence on cotton from forced labor-affected regions. However, some domestic manufacturers argue this approach risks further offshoring of production and weakening of labor standards.

Belgium’s diamond industry, known for rigorous supply chain oversight, nevertheless remains under criticism for potential labor abuses linked to diamond mining in certain regions. While natural diamonds are not mined in the U.S. or Europe, the tariff exemption covers European-cut diamonds sourced globally, a significant portion of which enters the U.S. market.

The U.S. Embassy in Belgium praised the tariff exemption as the product of “constructive dialogue” between the two countries. The diamond center credited its “months of sustained advocacy” for securing the outcome. According to the U.S. ambassador to Belgium, the diamond-encrusted ring gifted to Mr. Trump remains in his official residence. A White House official indicated that the ring is yet to be received in Washington and would eventually be archived, with an option for President Trump to acquire it.