Episode 528: How to Navigate Tariffs and Your Jewelry Business
Are the new 2025 tariff proposals keeping you up at night? If you're a jewelry business owner or creative entrepreneur with a product-based business, you're not alone. In this episode, I break down exactly what these tariff changes mean for your jewelry business, how they might impact your pricing and sourcing, and most importantly – practical strategies to protect your margins without panicking.
In this episode, you’ll learn:
- [3:25] What’s going on with the 2025 tariff policy and the 90-day pause
- [5:30] Which countries face the highest proposed tariff rates and how they'll impact jewelry supply chains
- [15:42] My simple pricing strategy to maintain margins without losing customers
- [21:16] Three practical ways to diversify your supply chain and find alternative sourcing options
- [27:35] Smart cash flow management techniques when tariffs require upfront payments
- [32:18] How to communicate price changes to your customers in a way that builds trust
Understanding the 2025 Tariff Policy
President Trump has introduced a new tariff policy that includes a baseline 10% tariff on nearly all imports, which was supposed to be effective April 2025. However, there is currently a 90-day pause on these tariffs for most countries (with China being a notable exception).
The policy also includes reciprocal tariffs on countries with higher rates who have been imposing tariffs on US goods. This is what Trump has called “economic self-defense” to counter long-term trade imbalances.
“This is not a political post. I'm trying to be as neutral and objective as possible, and to share with you what I know about why these tariffs are being proposed and what that looks like to the jewelry community.”
Countries and Products Most Affected
The jewelry industry sources materials internationally, and these countries will see significant tariff increases:
- China: Current tariff rate up to 54% on finished jewelry and gemstones
- India: 27% tariff on diamonds, gold, and silver jewelry
- Thailand: 36-37% tariffs on rubies, sapphires, and finished pieces
- Vietnam: 46% tariff on jewelry and watches
- Botswana: 37% tariff on rough and polished diamonds
- Switzerland: 31% tariff on luxury watches and fine jewelry
- Israel: 17% tariff on diamonds
- EU: 20% tariff on assorted fine and custom jewelry
How the Jewelry Industry Will Be Impacted
The tariffs will cause several shifts in our industry:
- Increased costs across the supply chain: Tariffs paid at the border will be passed on to retailers and eventually to customers.
- Pressure on small businesses: While large brands can shift production to absorb costs, independent jewelry designers may see a squeeze in margins.
- Supply chain shake-up: Businesses may shift sourcing to countries like Mexico, Sri Lanka, Indonesia, and Bangladesh that don't have similar tariffs on the US.
- Specific product impacts: Diamonds (both mined and lab-grown), precious metals, and budget-friendly costume jewelry options will all see price increases.
How to Adapt Your Business Strategy
First, Don't Panic
These changes are disruptive, but they can also be an opportunity to rethink your pricing strategy, improve your messaging, and build a more resilient business. Remember:
- Stay calm and be strategic – businesses that adapt the fastest (not the cheapest) will come out ahead
- Tariffs are not forever, but the habits you build now set your brand up for long-term success
- Use this moment to get creative with your sourcing, marketing, and storytelling
Rethink Your Pricing Strategy
Now is the time to:
- Do a pricing audit – make sure your products are priced properly with enough margin to make a profit
- Focus on the why behind your pricing – talk about how your jewelry is made, the quality, ethical sourcing, and symbolic meaning
- Avoid framing your product around price or discounting too often – train customers to expect value instead of markdowns
When communicating price changes, be transparent:
“Due to rising materials and import costs, we're adjusting our prices to continue delivering the quality and integrity that you expect.”
Diversify Your Supply Chain
Consider these strategies:
- Find alternative suppliers in lower-tariff countries like Mexico, Sri Lanka, Indonesia, or Bangladesh
- Source domestically when possible – look into local casters and bench jewelers
- Go straight to the source if you can – take a trip and source directly from vendors
Manage Your Cash Flow Wisely
Since tariffs must be paid upfront when goods clear customs, this can constrain liquidity. Some strategies include:
- Batch smaller orders and order more frequently
- Negotiate better terms with suppliers so you can pay over time
- Adjust your reorder points and plan further in advance, especially for the holiday season
What to Watch for in the Next 90 Days
The 90-day pause on tariffs expires in July, but there's potential for:
- Extension while negotiations continue
- Escalation of tariffs
- Replacement with something completely different
The best approach is to:
- Stay informed by subscribing to trade news updates
- Build agility into your operations (consider using AI tools to streamline)
- Join communities for more information and support
Final Thoughts
Remember, this isn't the first time our industry has faced challenges. The businesses that don't panic and instead approach changes strategically are the ones that thrive. Stay curious, ask better questions, and look for opportunities where others see obstacles.
“In 2008 when the market crashed and a lot of businesses were wiped out, the businesses that didn't freak out and become afraid were the ones that thrived.”
For complete strategies on navigating these tariff changes, listen to the full episode and please leave a review to help other jewelry business owners find this resource during these uncertain economic times.
xo, Tracy
Sponsor Spotlight
[FREE DOWNLOAD] Tariffs, Pricing and Your Independent Jewelry Brand
I created a free guide just for independent brands like yours. It breaks down exactly how to adapt your pricing, manage suppliers, and stay profitable without the panic. You'll learn what the new 2025 trade shifts actually mean and how to protect your margins while still attracting your dream customers.
[COMING SOON] Desire AI: Your 24/7 Marketing Assistant
Imagine if your content, emails, and launch strategy for your collections could literally be done in minutes and still sound like you. Desire AI is your 24/7 marketing assistant and business coach, trained to speak in your voice, write like your brand, and help you show up consistently without the burnout.
Links in this episode:
FREE GUIDE: Tariffs, Pricing and Your Independent Jewelry Brand
Buy My Book: The Desired Brand Effect