Tariffs and Tensions: The Jewellery Industry Faces a New Era of Trade Disruption

How Trump’s 2025 Tariff Policy Is Reshaping Global Jewellery Supply Chains

The global jewellery industry is navigating a complex landscape in 2025, as President Donald Trump’s administration imposes sweeping tariffs on imports, aiming to bolster domestic manufacturing and address trade imbalances. These measures have significant implications for the jewellery sector, which relies heavily on international supply chains.

The Tariff Landscape 

In April 2025, the U.S. implemented a blanket 10% tariff on all imports, with additional “reciprocal” tariffs targeting specific countries:

• India: 27%

• Thailand: 37%

• European Union: 20%

• China: 104%

These tariffs are in addition to existing duties and have disrupted established trade flows, particularly affecting countries integral to the jewellery supply chain.

Impact on Key Players

India: As the world’s largest hub for diamond cutting and polishing, India’s jewellery exports are under pressure. The U.S. accounts for nearly $10 billion of India’s annual gems and jewellery exports. The new tariffs have led to a 17% drop in exports of cut and polished diamonds, with significant job losses reported in the sector.

Thailand: Home to major manufacturing operations for brands like Pandora, Thailand faces a 37% tariff on its exports to the U.S. Pandora has responded by rerouting shipments to Canada and Latin America and exploring new manufacturing bases in Vietnam to mitigate the impact.

European Union: With a 20% tariff imposed, European luxury jewellery brands are reassessing their U.S. market strategies. Some are considering shifting focus to other markets or adjusting pricing structures to accommodate the increased costs.

Industry Responses

Companies are adopting various strategies to navigate the new tariff environment:

• Supply Chain Diversification: Brands are exploring alternative manufacturing locations and supply routes to reduce dependency on countries facing high tariffs.

• Price Adjustments: Some companies have implemented price increases to offset the additional costs imposed by tariffs.

•  Market Reorientation: Firms are shifting their focus to markets less affected by U.S. tariffs, such as Europe and Asia, to sustain growth.

Looking Ahead

The jewellery industry is at a crossroads, balancing the challenges of increased tariffs with the need to maintain global competitiveness. Stakeholders are closely monitoring developments and advocating for trade policies that support the sector’s sustainability and growth.