Editor’s Note
This article highlights a significant competitive advantage for Thailand’s silver jewelry industry, as a lower US tariff rate compared to key rivals alleviates pressure to relocate production.
Silver jewellers are feeling relieved about potential production relocation following the US tariff rate for Thai goods being set at 19%, lower than that of key competitors.
Sidthisak Limvatanayingyong, president of the Thai Silver Exporters Association, said the 19% tariff rate for Thai products, including silver jewellery, is much less than key competitor India, which faces a 50% reciprocal tariff.
Mr Sidthisak called for the government to provide clarity on transshipment rules because most raw materials for the jewellery sector such as precious metals and rough gemstones are imported and processed in Thailand.
Mr Sidthisak said Thai silver jewellers must diversify export markets as the US represents nearly 30% of silver jewellery exports.
He said the Middle East offers promising market opportunities that align with government policy.
Mr Sidthisak anticipates Thai silver jewellery exports to grow by 5% this year from about US$2 billion last year.
However, exports are expected to slow in the third quarter following a surge in the first half.
According to the Gem and Jewelry Institute of Thailand, the country’s exports of gems and jewellery products excluding gold reached $7.41 billion in the first half, a gain of 62.7% year-on-year.
Key export markets included India, contributing $2.94 billion, followed by Hong Kong at $1.31 billion and the US $1.09 billion.
Silver jewellery exports were valued at $1.1 billion, an uptick of 30.8% year-on-year, accounting for 19% of the total gem and jewellery exports.