The jewelry industry is bracing for potential disruptions following President Donald Trump’s decision to impose new tariffs on key U.S. trading partners. The administration has announced 25% tariffs on imports from Mexico and Canada, along with an additional 10% tariff on goods from China.
Speaking to Congress, Trump reaffirmed his commitment to the tariff policy. “The tariffs are about making America rich again, making America great again,” he said. “It’s happening, and it’s happening soon. There will be some disruption, but we can live with it. It won’t be big.”
However, a top cabinet official suggested there may be room for negotiation. Commerce Secretary Howard Lutnick, a former investor in jewelry e-retailer Ritani, told Fox Business News that a compromise on tariffs could be announced as early as today.
Industry Concerns Grow Amid Market Reactions
Lutnick’s comments followed two consecutive days of stock market losses, which analysts attributed to fears of a potential trade war. Jewelry industry leaders and manufacturers are closely monitoring the situation.
“We are concerned about broad tariffs, especially on Chinese exports,” said David Bonaparte, president and CEO of Jewelers of America. “The last thing we want is for consumers to pay more for jewelry, especially with continued high inflation.”
Several manufacturers have already reported a 10% increase in costs. Bonaparte warned that any tariffs on Indian imports would have significant consequences for the jewelry sector.
David Cochran, president and CEO of the Manufacturing Jewelers and Suppliers of America (MJSA), believes fashion jewelry companies sourcing from China will feel the immediate impact. He noted that the COVID-19 pandemic had already strained supply chains, prompting more businesses to consider relocating operations to the U.S. “This trend may accelerate,” Cochran said. “We are also watching how Canadian diamond imports will be affected, especially since the natural diamond market is already under pressure from thin margins and competition from lab-grown diamonds.”
Richline Group President and CEO Dave Meleski expects minimal impact on trade with Mexico and Canada, citing limited jewelry production in those regions for the U.S. market. However, he acknowledged that tariffs on Chinese imports could disrupt supply chains. “For Richline, our factories in China are now diverting production to other countries that are not affected by these tariffs,” Meleski said.
Meleski also expressed concerns about market instability. “The day-to-day volatility is unsettling,” he said. “It’s affecting the metals market. Higher gold prices could slow down consumer sales.”
A jewelry manufacturer who wished to remain anonymous told JCK that importers from China face tough decisions. “They have to decide how much of the 10% increase they’ll pass on to consumers. For imports from Canada and Mexico, the added costs may be unavoidable. Jewelry prices will rise—it’s a messy situation.”
Retailers and International Response
The National Retail Federation (NRF) has been critical of the tariffs, warning of potential economic repercussions. “Tariffs could weigh on the economy and have adverse effects,” said NRF Chief Economist Jack Kleinhenz. “While recent economic data remain strong, we are concerned about downside risks.”
In response to the U.S. tariffs, Canada, China, and Mexico have announced retaliatory measures. Canada’s list of goods subject to a 25% tariff includes several jewelry categories. According to the Canadian government, these countermeasures will remain in place until the U.S. removes its tariffs on Canadian products.
Data from business news outlet Sherwood indicates that Canada imported $328.2 million worth of jewelry from the U.S. in 2023. Sara Yood, president and CEO of the Jewelers Vigilance Committee, urged businesses to prepare for higher export costs. “The Trump administration has made tariffs and trade a major focus,” she said. “We encourage business leaders to communicate with Congress about the impact on their operations.”
Canadian Prime Minister Justin Trudeau strongly criticized the tariffs, calling them “very stupid.” Announcing Canada’s countermeasures, Trudeau stated, “We will not back down from a fight, not when our country and the well-being of everyone in it is at stake.”
The Chinese embassy in the U.S. also issued a statement on social media platform X, declaring: “If war is what the U.S. wants, be it a tariff war, a trade war, or any other type of war, we’re ready to fight till the end.”
As the trade dispute escalates, the jewelry industry remains on edge, preparing for potential price hikes and supply chain disruptions while hoping for a resolution.
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