De Beers, a conglomerate involved in the mining and trading of diamonds, announced on Monday (18) that it would reduce diamond prices for the first time since the end of 2024.
The reduction came after a drop in demand driven by the decline in luxury spending in China, the increase in popularity of synthetic stones and US tariffs on India, the world’s largest diamond exporter.
In an attempt to avoid an official price reduction, the company was already carrying out private sales with discounts of around 25% for some categories of gemstones.
Holding 33% of the diamond sales market share in the world, De Beers famously avoids price cuts as any move it makes influences the sector as a whole.
According to Bloomberg, the size of Monday’s price cuts was not immediately clear. De Beers had last cut prices in December 2024, and the new reduction comes at a crucial time for the company that invented the modern diamond industry.
Crisis in luxury?
The diamond industry is facing one of the deepest and most prolonged crises in recent history, amid slowing spending on luxury goods in China and the rise in popularity of synthetic stones. US tariffs on India — the world’s largest diamond exporter — further aggravated the situation.
Continues after advertising
The impact is already being felt in Botswana, one of the largest producers and exporters of diamonds in the world, where the stones are an essential source of income.
The African country’s Ministry of Finance has warned that mineral revenues could end the 2025-2026 fiscal year at just 10.3 billion Pula ($744 million), less than half the historical average of 25.3 billion Pula, and the government is already admitting a prolonged period of weakness in diamond prices, with serious implications for the southern African nation’s budget.
“The recovery in mineral revenue is expected to be prolonged,” the ministry wrote in a strategy document released ahead of next month’s annual budget. “The insufficiency will likely persist in the medium and long term, with the possibility of no recovery.”
Continues after advertising
According to the Ministry of Finance, rough diamonds are expected to sell for US$99.3 per carat at the end of 2025, compared to US$128.8 in 2024, increasing pressure on Botswana’s public finances.
“In the context of heightened macrofiscal pressures, the government will prioritize the restoration of fiscal sustainability by strengthening spending discipline,” says the document, noting that the budget deficit is expected to reduce to 3.3% of gross domestic product in 2025/26, from 4.2% in 2024/25.
Bad time
At the beginning of the second half of 2025, the diamond market was experiencing an improvement. But in August, Trump imposed 50% tariffs on India, which is responsible for around 90% of diamond trading, cutting and polishing. At the other end, the USA remains the largest consumer market in the world.
Continues after advertising
The impact was immediate and could not have come at a worse time for Anglo American Plc, De Beers’ parent company. The mining company seeks to exit the business as part of a radical restructuring after having repelled, in 2024, a US$49 billion offer from BHP Group.
