Despite a contracting luxury market, jewelry remains resilient, driven by both ultra-wealthy shoppers and middle-class consumers who see pieces like Cartier Trinity bracelets as investments rather than discretionary purchases. For overseas jewelry buyers, this signals sustained demand across price tiers, but also introduces new supply-chain risks from US tariffs and rising gold prices that require careful sourcing and pricing strategies.
Market resilience and consumer behavior
Jewelry has outperformed other luxury categories, with Bain partner Federica Levato noting that "unlike handbags, jewelry has not priced out aspirational customers" because it is viewed as an investment tied to gold's climbing value. Morgan Stanley estimates show Kering and Richemont's jewelry maisons each grew about 4% in 2024, while LVMH's jewelry division saw gains offset by a 3% dip at Fred and Tiffany. The outlook for 2025 remains broadly positive, with Kering's latest results highlighting momentum in its jewelry portfolio.
Supply-chain impact: US tariffs and gold prices
On 2 April, the US announced a 10% baseline import duty and higher reciprocal tariffs — 31% for Switzerland, 20% for the EU, 10% for the UK, and 26–27% for India. The 10% tariff from Europe took effect on 5 April, while higher tariffs have been delayed to 1 August. Pandora, the world's largest jewelry producer by volume, estimated a gross annual impact of approximately $168 million if reciprocal tariffs are enforced. The company is adjusting its supply chain to serve Canada and Latin America directly, bypassing its US distribution hub.
Pricing strategies and brand responses
Cartier implemented 3% price increases on jewelry and 5% on watches in the US as of May, while Van Cleef & Arpels applied 10% US price increases on its icon products in April, with lower adjustments in Europe (+5%) and China (+7%). Oliver Müller of LuxeConsult explains that for higher-end jewelry, tariff impact is less noticeable: a 31% duty on import value translates to roughly a 12% retail increase. Small brands like Loquet are absorbing costs where possible, with founder Sheherazade Goldsmith stating, "If tariffs rise further, we'll likely absorb part of that cost ourselves before passing anything significant onto our customers."
What buyers should watch
Overseas buyers should monitor tariff developments closely, particularly for imports from Thailand, Vietnam, India, and China. The delayed deadline of 1 August for higher US tariffs creates a window for supply-chain adjustments. Rising gold prices continue to support jewelry's investment appeal, but small and mid-sized suppliers may face margin pressure. Sourcing from regions with lower tariff exposure or negotiating transparent pricing that includes duties upfront could mitigate risks. China, once a key growth engine, presents both opportunities and challenges as trade tensions evolve.
Compliance and logistics signals
Pandora's decision to redirect supply chains away from its US distribution hub to serve Canada and Latin America directly signals a broader trend toward regionalized logistics. Buyers should evaluate their own distribution networks for similar efficiencies. The 10% baseline US tariff is already in effect, and higher reciprocal tariffs may follow after 1 August. Ensuring compliance with customs documentation and understanding duty calculations on import value versus retail price will be critical for cost management.
Source: Read the original report | Published: July 10, 2025