Part 2: How New Tariffs Could Reshape Jewelry Manufacturing

We’re diving deeper into how new tariffs on imports may impact the jewelry manufacturing supply chain. From raw materials to finished products, understanding these shifts is key to staying ahead.

What Are Tariffs and Why Do They Exist?
As a quick recap, tariffs are taxes placed on imported goods by a government. The goal is typically to make foreign products more expensive, boosting domestic industries by encouraging local production.

However, their impact isn’t always straightforward. While tariffs may offer protection for U.S. manufacturers, they also increase costs for businesses reliant on imported materials—something especially relevant to the jewelry industry.

How Do Tariffs Work
When a product is imported, customs officials calculate the tariff based on either:
– A percentage of the item’s value
– A fixed amount per unit of goods

For jewelry businesses, tariffs can apply to both raw materials (gold, silver, gemstones) and finished products (imported necklaces, rings, bracelets). Understanding where these tariffs are applied is crucial for predicting price fluctuations.

How Will This Impact Jewelry Manufacturing Costs?
  – Higher Material Costs
– Increased Production Expenses
– Increased Finished Product Costs (if importing)
– Pricing Adjustments for Consumers or Lower Margins

The Big Question: Will Tariffs Boost Domestic Manufacturing?

One of the main justifications for tariffs is to encourage more domestic roduction. In theory, making imported goods more expensive should drive businesses to produce within the U.S. But in the jewelry industry, it’s not that simple.
– Challenges in Scaling Domestic Production: While the U.S. has a strong jewelry manufacturing sector, it currently lacks the capacity to replace the volume of imported goods overnight. Expanding domestic facilities takes time and investment.
– Challenges in Domestic Manufacturing Workers: Many brands shifted production overseas decades ago, leading to a shrinking pool of skilled jewelers and manufacturers in the U.S. Rebuilding this expertise won’t happen overnight.
– Dependence on Imported Materials: Even if jewelry is manufactured domestically, raw materials like gold and gemstones still need to be imported—meaning tariffs may still raise costs.
– Higher Domestic Labor Costs: Domestic labor is significantly more expensive than in manufacturing hubs like China or India. However, when considering full supply chain costs (including import fees, shipping, and time to market), U.S. manufacturers can remain competitive—especially for certain products.

While some U.S. jewelry manufacturers may benefit from reduced foreign competition, tariffs alone are unlikely to trigger a massive resurgence in American jewelry production. Instead, brands will need to adapt—whether by rethinking supply chains, adjusting pricing strategies, or exploring alternative materials.

How Can Atila Help?

The good news is that our international manufacturing operates in countries that aren’t expected to be affected by the new tariffs. Tariffs can create challenges, but we help make things easier. Whether you’re looking to cut costs, explore domestic production, or optimize your supply chain, we have flexible solutions to keep your business on track. Let’s talk about the best approach for you.

1. We manufacture in-house in Los Angeles’ jewelry district, ensuring quality and speed at competitive pricing.
2. We offer production options internationally, including, giving you flexibility and scalability.
3. We help brands adjust their supply chains, keeping them competitive amid shifting trade policies.

Let us know how we can help you. Contact us today to learn more.

Cheers,

Your Atila Team