The Chief of De Beers says

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The head of the world’s largest diamond campaign expressed confidence that the United States would remove the tariffs on the gems, which, in his opinion, do not benefit the country.

Al Cook, CEO of Dee Beers, told the Financial Times that “there is no diamond production jobs in the US,” and that the company has conducted a discussion with several governments on the issue.

The tariffs brought “no use” to the US, and “would be exclusively tax on the US consumer,” he said. “No jobs will be created.”

The US is the world’s largest diamond jewelry market, which is about half the world’s demand, but has no domestic mining and famous commercial stones.

According to the market participants, the tariffs announced by President Donald Trump threw the diamond industry to shock and briefly brought trading in gems.

The World Diamond Council, a group of lobby, representing the industry, warned that $ 117 billion in annual revenue, as well as 200,000 US jobs in the jewelry sector will be at risk if the US does not delete stones.

“Diamond tariffs will function as a consumption tax, raising the prices for wedding rings, anniversary gifts and other jewelry,” the group said on Monday, which called on the White House to release gems from new duties.

Diamonds coming to the United States are subject to 10 percent tariffs on all imported goods and face a variable collection on the basis of the country, which was suspended for 90 days.

Many raw materials were expelled from the tariffs, but the diamonds were not – adding pain for the branch with a downturned demand and competition from synthetic diamonds that can be made for the share of the value.

Because diamonds are so small and valuable, they often fly around the world in a complex supply chain that stretches from mines in countries such as Botswana or Angola, to polishing in India, to the jewelry stores in China or the United States – making them very sensitive to trading.

The gloomy market conditions and tariff interruptions come at a particularly sensitive time for de Beers as it is preparing to get out of its maternal company, London Anglo American, either through sale or through the original public offer.

Anglo must launch the official selling process for “very fast” de Beers “, – Cook. The company is preparing for the IPO, which may happen before next year, he added.

De Beers reported a profit in the first quarter of $ 520 million, which is 44 percent below the same period a year earlier due to the decrease in prices and sales.

Anglo American has twice Recorded value Over the past two years, Dee Beers has taken $ 2.9 billion on a diamond block over the past two years and a $ 1.6 billion violation last year.

Cook acknowledged that the tariffs had “influence” on the diamond industry, but stated that “not as sharply as it was.”

“People are convinced that the diamond will be released from the tariffs in the future,” he said.

“The United States was quite clear that the natural resources produced outside the US are not tariffs.”

Kuhag comments come after the White House has given a certain soil at the tariffs, providing exemption from subjects such as smartphones and motorways.

Positive noises from the trade talks between the US and India – the largest diamond grinding world – also believe that the appeal may be at hand.

A trading transaction between New Delhi and Washington can facilitate one of the key points along the diamond supply chain as India polish more than 90 percent of the world’s diamonds and is the main exporter of the United States.