Recent tariff changes are set to shake up the jewelry industry, affecting both small independent designers and major brands alike. These new policies will have a significant impact on material costs, production expenses, and ultimately, retail prices. For jewelry businesses that rely on imported materials such as gold, silver, and gemstones, these changes could present serious challenges. Let’s dive into what the new tariffs mean and how brands can navigate these shifts.

Breakdown of the New Tariffs

The latest tariffs are targeting a range of imported goods, including raw materials and finished jewelry products. Here’s what we know so far:

• Gold, Silver, and Platinum: Increased import duties on these metals are likely to drive up costs for jewelry makers.

• Gemstones: Tariffs on imported diamonds, sapphires, rubies, and other precious stones could make sourcing more expensive.

• Finished Jewelry & Packaging: Brands that manufacture overseas and import finished pieces may see higher costs, along with increases in packaging prices.

• Production Tools and Equipment: Essential jewelry-making tools and machinery could also be subject to higher tariffs, affecting manufacturers and independent artisans alike.

Impact on Jewelry Brands

These tariff increases will likely result in:

• Higher Material Costs: With rising prices for metals and gemstones, brands will need to absorb or pass on these costs to consumers.

• Increased Manufacturing Expenses: Businesses that produce jewelry internationally will face additional import fees, making offshore production less appealing.

• Challenges for Small Businesses: Unlike larger companies that can negotiate bulk pricing or shift production, smaller brands may struggle to keep costs down.

• Potential Price Increases: Many jewelry brands may have no choice but to raise prices, which could affect customer purchasing decisions.

How Jewelry Brands Can Adapt

To stay competitive and maintain profitability, jewelry brands may need to explore various strategies, including:

• Sourcing Locally: Looking for domestic suppliers and ethical sources to mitigate tariff impacts.

• Rethinking Pricing Strategies: Adjusting retail prices while effectively communicating changes to customers.

• Focusing on Sustainability & Handmade Jewelry: Tariffs may encourage a shift toward handmade, small-batch, and sustainable jewelry as an alternative to mass-produced imports.

• Exploring Alternative Materials: Some brands may turn to alternative materials that are not subject to high tariffs.

Magick Alchemy’s Approach

At Magick Alchemy, we are proud to produce all of our jewelry in New York's Diamond District. All of our gold used is recycled US sourced gold. (melted and refined by United Metal Industries in Aldin, NY.) https://www.unitedpmr.com/

This means the only thing affecting our gold is the current gold pricing.

However, we do source essential clasps, jump rings, and chains from Italy (20%), Indonesia (32%), Mexico (25%), and Turkey (10%). Our chain supplier is working on the best possible solution and this probably means sourcing from countries with the lowest tariff. Our gold wires (used to make jump-rings and bails) will now be handmade in our studio.

All pendants, and ring pricing (including custom) will remain the same, with an exception of specialty gems sourced from overseas. This includes.. lab diamonds from India (26%) and precious gems (sapphires and rubies) from Sri Lanka (44%) and Thailand (36%) which is where most gemstones are faceted. We are exploring ways we can absorb some of this cost.

Additionally, 95% of our gemstones are purchased at the Tucson trade show in the U.S., ensuring quality and ethical sourcing. While we are still assessing how tariffs may affect next year’s international vendors, we have a healthy supply of gemstones in our inventory, meaning our pricing will remain stable despite potential disruptions. 

While we won't be affected as much as others, that can potentially change in the future. Especially with sourcing for findings (clasps and chains) and of course future gem sourcing. Our US gem dealers still have a healthy supply of gemstones, but as time goes on they will need to source new parcels from Sri Lanka and Thailand. We will also encourage supporting our US gemstone faceters.

The jewelry industry, amongst many industries is facing a pivotal moment with these new tariff regulations. While challenges are inevitable, we will adapt quickly and strategically to have the best chance of thriving in this new landscape. As consumers become more conscious of pricing and sourcing, transparency and innovation will be key in maintaining trust and loyalty. We will keep our customers updated and informed as these new tariffs are implemented.

- Susan Burde

What do you think about these tariff changes? Will they impact how you shop for or create jewelry? Share your thoughts in the comments below!