The Israel Diamond Exchange is collapsing: "Economic failure, we have suffered a defeat"

The Israel Diamond Exchange is collapsing: "Economic failure, we have suffered a defeat"

The Israeli diamond industry continues to face a deep crisis. According to data from the Diamond Controller's office, cumulative exports from the beginning of 2026 to the end of June totaled only $2.4 billion, the lowest figure ever recorded in the industry. For comparison, in 2015, which was considered a peak year, the export volume stood at about $7 billion. The total trade volume in the industry has also dropped to about $4 billion, compared to about $12 billion in peak years.

Against the backdrop of these difficult figures, the resigning president of the Diamond Exchange, Nissim Zuaretz, attacked Prime Minister Benjamin Netanyahu in an interview with ynet following the 12.5% customs duty imposed by the United States on the import of diamonds and goods from Israel, while other countries managed to reduce the duty to zero.

"What is happening here is that in the economic arena, Israel has suffered a defeat against the American administration; there is no other way to describe it. In the security arena, we are shoulder to shoulder with the Americans, and in the economy, we have suffered a failure."

Zuaretz added direct criticism of the government's conduct: "We are the closest ally of the USA, and we are discriminated against because Bibi does not handle the economic field, he is not interested. The Tax Authority in the Ministry of Finance is trying to help, as is the professional team, but the failure is Bibi's. Otherwise, I don't know how to explain how they haven't reached an agreement yet. We tried to pressure him through Haredi diamond dealers and in every possible way to influence, but the moment it reaches Bibi, it stops."

According to him, if the situation does not change, some companies will be forced to move their operations abroad. "If nothing changes, many diamond dealers will move to Belgium, and I will also open a company there. We do not have the margin to absorb another 12.5% tax. Some of the diamond dealers in Israel will have to go home and close their business. We are Israelis and we want to stay here," he said.

Shmuel Schnitzer, former president of the Diamond Exchange, also addressed the crisis: "The situation right now is very difficult, but I have hope. Part of the situation we have found ourselves in stems from American taxation, which effectively means that we have no access to the American market." According to him, the cancellation of the duty is a significant condition for the continued operation of the industry, since about 70% of Israel's diamond exports are directed to the United States.

Meanwhile, the Diamond Controller, Natalie Gutman, defined the state of the industry as "unprecedented" and noted that the trade volume today stands at only about a third compared to a decade ago. According to her, alongside the global crisis in the industry, Israel is also dealing with competition from Dubai and the rise in the use of lab-grown diamonds, which are hurting the demand for natural diamonds.