Miami, May 23, 2024 — US tariffs are reshaping the high-end jewelry market, hitting independent designers particularly hard and forcing some to reconsider production strategies. Brazilian designer Ara Vartanian says the 50% import tariff on jewelry made in São Paulo has “hit me twice,” also impacting sales to Canadian clients who previously shopped in Miami.
Tariffs Trigger Restructuring for Jewelers
Rising import duties and gold prices are forcing brands to adapt, with some absorbing costs and others rethinking production.
- US tariffs are impacting jewelry brands, especially smaller, independent maisons.
- European brands face lower tariffs, giving them a competitive advantage.
- The high jewelry market—unique pieces priced from $100,000—continues to drive growth.
- Brands are investing heavily in the US market despite economic headwinds.
The 50% tariff prompted Vartanian to evaluate producing some pieces within the US and to lean more heavily on trunk shows, a traditional sales method for independent jewelers. He has even canceled participation in jewelry shows in Las Vegas scheduled for late May and early June. A 25% import tariff introduced by Canada has further dampened sales, discouraging Canadian clients from traveling to Miami to make purchases. “With the US now my second largest market after Brazil, the tariffs have been a real blow,” Vartanian added.
What are the biggest challenges facing jewelry brands today? Rising tariffs and gold prices are squeezing margins, forcing companies to make difficult decisions about pricing and production.
Larger European brands, such as Bvlgari and Boucheron—owned by LVMH and Kering, respectively—are dealing with a comparatively lower 15% duty. While acknowledging the impact, officials at both houses say the effect is manageable. “We would have preferred not to have it, of course,” said Babin. “But at least it is a factor that—unlike gold prices—is stable and easier to plan for. It means we need to make our value proposition more appealing and more meaningful.”
Boucheron CEO Hélène Poulit-Duquesne echoed this sentiment, stating, “Our ambition is to further strengthen our presence in this market, and to introduce the world of the maison more widely,” signaling a commitment to succeeding in the US despite the challenges.
Independent maisons face a more complex situation, lacking the operational and financial resources of larger groups. Jean-Baptiste Sassine, CEO of Messika, emphasized the US market’s importance. “The US remains clearly and openly our number one priority,” he said. “Eight years ago, the American market didn’t exist for us. Today, it represents around 15% of our business, and we aim to double that share within the next five years.”
Messika is investing heavily in the US across communication, store openings, events, and inventory. To protect its growing business, the brand is absorbing “a significant portion of these additional costs,” even as gold prices increase. Plans include opening six new boutiques in the US in 2026.
Even emerging brands recognize the importance of the US market. “It’s a market that’s hard to ignore if you want to build a globally relevant brand,” says Christie Wollenberg, founder of London-based jewelry label Otiumberg (US import tariffs for the UK stand at 10%). She also noted that American consumers generally have greater spending power and a higher appreciation for European brands.
Beyond the challenges, the jewelry industry is experiencing growth in the high jewelry segment—unique pieces priced from $100,000 and up—alongside the enduring appeal of iconic designs.
