Coloured Gemstones in the Crossfire: What Trump’s Tariffs Mean for the Afghan Gem Trade

The coloured gemstone trade has always operated on a delicate balance — between nature and craftsmanship, tradition and market demand, local mines and global buyers. Now, that balance faces disruption. With Donald Trump’s proposed 10% universal tariff on all imports — and up to 50% for selected countries — the gemstone sector is bracing for what may become a quiet but devastating shock to global supply chains.

At Lisbon Gem Exchange, we specialise in Afghan tourmalines — natural, untreated, ethically sourced. This business model depends on fragile, often informal networks of miners, couriers, polishers, and local traders operating in one of the most geopolitically complex regions in the world. A sudden shift in global trade policy, such as the one unfolding now, can do more than distort pricing. It can break the chain entirely.

The Global Industry Reacts

While most headlines have focused on large economies, the gem and jewellery sector has begun to register real concern. According to the International Gem Society, the introduction of tariffs will directly impact key gemstone processing hubs such as India and Thailand — countries that cut, polish, and export stones to the United States on a massive scale.

India, which exported more than $32 billion in gems and jewellery in 2023, is now facing tariffs of up to 27%, a move that experts fear could lead to a sharp contraction in jobs and competitiveness. As reported by The New Indian Express, the shift will force Indian companies to seek new markets and delay major shipments indefinitely.

And yet, it is not just India or Thailand that are vulnerable — it’s the source countries, like Afghanistan, that may suffer the most.

The Fragile Supply Chain of Afghan Tourmalines

Afghanistan is one of the richest sources of natural coloured gemstones in the world, particularly tourmalines, mined in the mountainous regions of Nuristan and Laghman. But the trade that brings these stones from mine to market is anything but stable.

Afghan gem mining is often artisanal and community-based, relying on generational knowledge, informal economies, and local cooperation. These miners do not have access to international logistics firms, global banking systems, or sophisticated export insurance. They depend on a fragile corridor that passes through Peshawar in Pakistan, where goods are consolidated, refined, and forwarded to international buyers.

When major importers like the United States begin imposing punitive tariffs, the economic incentive to buy from vulnerable regions diminishes dramatically. Buyers hesitate. Shipments are delayed. Small exporters — often operating on credit and trust — are left with inventory they cannot move. The damage is disproportionate: a 10% tariff in Washington can translate into a 100% loss in a remote Afghan village.

As noted by Reuters, the broader consequences of this new tariff structure are likely to include collapsed margins, reduced order volumes, and the erosion of already tenuous supply relationships.

What This Means for Coloured Gemstones

Coloured gemstones — unlike diamonds — rely on decentralised, culturally rooted networks. Each stone’s journey involves dozens of actors: the miner, the sorter, the courier, the broker, the cutter, the polisher, the exporter. These are not industrialised processes. They are living economies.

Tariffs undermine the trust-based nature of the trade. They encourage larger players to shift sourcing to countries with more robust protections, bypassing regions that can’t afford to absorb the extra cost. For Afghan gems, this could mean disappearing from the global stage — not because of quality, but because of politics.

And yet, there is more demand than ever for ethical, traceable coloured stones. The luxury market has embraced provenance, transparency, and natural origin as critical values. Afghan tourmalines, with their striking saturation and untreated beauty, remain among the finest examples of what this market desires.

Resilience Through Responsibility

For those committed to ethical sourcing and maintaining access to the world’s most unique gemstones, now is the time to adapt — not retreat. It is essential to reinforce direct relationships, simplify supply chains, and strengthen the visibility of origin.

At Lisbon Gem Exchange, we are doubling down on our partnerships with Afghan miners and local partners in Pakistan to ensure continued access to rare stones. We are exploring alternative logistics strategies and expanding our client base beyond tariff-heavy markets. Most of all, we are maintaining our belief that beauty should not be silenced by policy.

Tariffs may be designed to protect economies, but they can also erase stories — the stories of families, of craft, of stones born in the mountains and shaped by hand. For the coloured gem trade, particularly in Afghanistan, the real cost of tariffs isn't just financial. It’s cultural. And that is a price too high to pay.