News
Mar 29, 2025
Five Scenarios for How New U.S. Tariffs Could Reshape the Jewelry Industry
Industry experts predict five potential outcomes—from secondhand market growth to manufacturing shifts—as the new 10% tariffs ripple through jewelry supply chains.
Jessica M. Nguyen
jessica.m.nguyen@fifthavemag.com
Retailers review tariff notices as U.S. import duties on jewelry parts come into effect.
The 10% tariffs introduced by the U.S. administration have already pushed wholesalers to warn retailers about upcoming price hikes. While the long-term effects remain uncertain, industry insiders outline five key areas to watch. First, sellers of pre-owned goods—like secondhand watches and jewelry—may see a surge in demand as consumers look for value amid higher gold prices. Second, retailers equipped to authenticate and purchase secondhand diamonds could thrive, reinforcing natural gems as reliable stores of value. Third, U.S. manufacturers stand to benefit from a renewed “Made in America” appeal, though many still rely on foreign-cut components and may face reciprocal levies when exporting their goods.
Fourth, Canadian and Mexican producers enjoy a temporary advantage under USMCA, keeping their goods tariff-free and potentially drawing more buyers. Fifth, large jewelry chains are better positioned to absorb costs and negotiate with suppliers—smaller independents may struggle under the “waterbed effect,” where big players lock in low prices. Finally, lab-grown diamonds could become relatively more attractive if natural-stone prices climb further, especially if inflation pressures bridal buyers. Throughout, experts urge jewelers to engage policymakers and share real-world impacts to shape the tariff debate.
Jessica M. Nguyen is the senior editor, news at 5th Ave. Magazine, covering trade policy trends and the industry-impact side of jewelry.
