The United States will impose a 50 per cent tariff on a range of Canadian goods, including loose polished diamonds and several jewellery categories, effective August 19. The tariffs will apply to products that would otherwise qualify for duty-free treatment under the Canada-United States-Mexico Agreement (CUSMA) and will be imposed in addition to any other applicable duties.

The new duties, announced by U.S. President Donald Trump under Section 338 of the Tariff Act of 1930, will apply to non-industrial diamonds, loose polished diamonds, certain silver and gold jewellery, precious metal jewellery, and imitation jewellery.

Thinking twice

In a report by CTV News, Brent Harden, owner of La Maison D’Or Jewellers in Ottawa, said his business remains in a strong position because it sources most of its products domestically. However, he noted that uncertainty surrounding potential counter-tariffs is making him think twice about purchasing products from U.S. suppliers.

In the same report, retail analyst Bruce Winder told CTV News that businesses are concerned about the potential impact on trade, saying they are “nervous about just seeing a literal drop off a cliff of their exports.”

The tariffs also affect a wide range of other Canadian goods, including electronics, hockey equipment, honey, flower bulbs, down feathers, plywood, and cowhides, among others.