Jewelry, Watch, Precious Stones & Metals Wholesalers NAICS 423940

Mar 19, 2025 - Tariffs to Affect Global Supply Chain, Prices

• The jewelry industry is anticipating a range of impacts from new Trump Administration tariffs on China, Mexico, and Canada, including the resourcing of factories, disruption of diamond flow, retaliatory tariffs, and price increases, according to JCK Online. For example, Richline CEO and President Dave Meleski said that his company is resourcing its products from its factory in China to countries unaffected by the trade war. He noted tariff volatility may negatively impact the metals market and expressed concern that an escalation in gold prices could dampen consumer sales. The trade wars may affect the flow of diamonds from Canada, which exported some $88 million to the US in 2023. Retaliatory tariffs will also affect the industry. Canada and the EU are prepared to impose a range of tariffs on US gemstones, diamonds, and precious metals in retaliation for new US steel and aluminum tariffs.
• According to a report in CFO Dive, consumer confidence levels, an indicator of jewelry spending, have fallen due to consumer anxiety about tariff effects and economic uncertainty. The consumer sentiment index from the University of Michigan dropped 11% in March 2025, marking the third straight month of declines and hitting the lowest level since November 2022. In addition, the Conference Board index of consumer sentiment in February 2025 marked the biggest decline since August 2021 and the third straight month of declines. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019. Most notably, comments on the current administration and its policies dominated the responses.”

• According to a recent report in The New York Times, jewelers are seeking out silver jewelry products as gold prices reached record levels. While silver costs approximately $30 an ounce, the price of gold was about $2,600 an ounce in December 2024 after peaking at $2,800 an ounce in October. The report found that some jewelry designers have turned to silver to make sizable and intricate pieces that would be cost prohibitive if made in gold. The lower cost of silver allows jewelers and consumers to prioritize design and creativity, according to one boutique jewelry store owner who has seen sales of silver items jump in 2024. According to Eric Gozenput, CEO at precious metals seller Bullion Exchanges, the shift to silver has influenced not only fashion trends but cultures such as India where buying gold jewelry is a deeply rooted tradition.
• New businesses in the wholesale jewelry industry increased by 9% in Q4 2024 compared to the same period a year ago, according to the Jewelers Board of Trade (JBT)’s Quarterly Vital Statistics Report. The number of new businesses during the quarter rose to 104, 28.4% higher than in the same period last year. Retailers saw an 87% increase in new businesses during the quarter while manufacturers saw a 5% increase. The total number of companies active in the US in the fourth quarter was 23,842. Retailers accounted for 18,071 of the industry (a 3.2% decline), wholesalers accounted for 3,495 (a 2.7% decline), and manufacturers accounted for 2,276 (a 4.1% decline). During Q4 2024, 137 businesses exited the sector, a 3% increase from the same quarter a year ago. The report noted that the number of business closures has normalized during 2024 and seems to be normalizing.