💎 FAQ: How Do Tariffs Affect the Diamond and Jewelry Market, Gold Prices, and Lab-Grown Diamonds? | May 2025 Update

As a private jeweler and appraiser, I’m frequently asked how international tariffs affect the jewelry industry, especially with so many recent changes. In 2025, the U.S. introduced new reciprocal tariffs that impact finished jewelry, diamond jewelry, lab-grown diamonds, and gold and silver products.

With rising jewelry prices, supply chain disruptions, and global shifts in sourcing, these tariffs are reshaping how both businesses and consumers interact with the jewelry market.

This guide breaks down how U.S. tariffs are influencing natural diamonds, lab-grown diamonds, gold jewelry, and platinum jewelry, and what you should know—whether you're shopping or selling gold.

What Are Tariffs, and Why Do They Matter in the Jewelry Industry?

A tariff is a tax that the U.S. government places on imported goods. In the context of the jewelry trade, that includes diamond jewelry, lab-grown stones, precious metals, and even fully finished jewelry.

These added costs affect:

• Jewelry materials like gold alloy components and platinum

• Diamond prices at the wholesale level

• What consumers ultimately pay at retail

As tariffs remain, they continue to play a growing role in retail prices and jewelry prices across the United States.

New Tariffs in 2025 and How They Affect the Diamond Trade

In 2025, the U.S. enacted new reciprocal tariffs targeting imports from key jewelry-supplying countries.

How Reciprocal Tariffs Impact Diamond Prices

As of this year, import tariffs include:

• 27% on cut and polished diamonds from India

• 37% on finished jewelry from Thailand

• Up to 54% on jewelry imports from China

• 20% on jewelry from the EU
  (Source: Rapaport)

The impact on the diamond market is significant:

• Diamond supply routes are shifting

• Prices may increase for certain origin stones

• Jewelers are adjusting sourcing to maintain margins

These changes will continue to affect both natural diamond and lab-grown diamond availability in the U.S.

Tariffs on Polished Lab-Grown Diamonds and Their Effect on Fine Jewelry

Lab-grown diamonds were once viewed as a lower-cost, tariff-safe option. That’s changing in 2025.

Will Domestic Manufacturing Offset Tariff Pressure?

With new tariffs on polished lab-grown diamonds—also 27% from India and China—jewelers are rethinking supply chains. Some brands are now:

• Investing in domestic manufacturing

• Shifting toward Made in USA lab-grown stones

• Trying to maintain pricing despite elevated import costs

Even though lab-grown diamond prices were already fluctuating, these tariffs could raise prices more significantly, making the gap between lab-grown and natural diamonds narrower.

Gold Prices and Tariffs: What Consumers Should Know

While global gold prices remain influenced by inflation, investor demand, and the dollar, tariffs now factor into the cost of gold jewelry in the U.S.

Why Retail Prices May Rise in 2025

As of this year:

• Gold jewelry imports now carry 32–34% tariffs

• Silver jewelry can face up to 40.5%

• Some platinum jewelry imports also incur similar fees
  (Source: Rapaport)

These gold prices and tariffs changes are encouraging some jewelers to:

• Use recycled gold and platinum to reduce import dependence

• Adjust retail prices upward

• Cut back on certain imported finished jewelry

If you’re selling gold this year, you're in a strong position. Domestic demand is up, and there’s increased interest in recycled gold as an alternative to taxed imports from India and other regions.

Ways Tariffs Are Changing Jewelry Trade in the U.S.

Tariffs are doing more than raising prices—they're changing how jewelers operate across the U.S.

Strategies Jewelers Are Using to Navigate New Tariff Costs

• Pandora has rerouted supply chains through Canada and Latin America to avoid U.S. duties (WSJ)

• Some local jewelers are investing in jewelry manufacturing in the U.S.

• High-end brands are using supply chain diversification to protect against volatility

• More buyers are now turning to the secondary market or estate jewelry to avoid tariffs on new goods

What Consumers Should Know During Tariff Shifts

Whether you're planning to buy or trade in your gold, understanding how tariffs could impact your transaction is key.

Here’s what to keep in mind:

• Always ask about the origin of a piece of jewelry—it could affect price

• Tariffs on finished jewelry vary widely by country

• Not all jewelry imports are taxed equally—your jeweler should explain

• Consider recycled or U.S.-made items to avoid imported tariffs

• Tariffs can drive up both base cost and markup—especially for diamond jewelry and gold items

Being informed allows you to ask better questions and get more value, whether you're buying or selling gold.

Final Thoughts: How Tariffs Will Affect Jewelry in 2025

In 2025, tariffs will affect nearly every aspect of the diamond and jewelry business. Whether you're shopping, investing, or appraising, here’s what to expect:

• U.S. tariffs on finished jewelry, lab-grown diamonds, and gold and silver are increasing total jewelry prices

• Price of gold remains high—and import taxes only add to the retail cost

• Natural diamonds, lab-grown, and platinum jewelry all face new costs that influence sourcing

• For consumers, the best strategy is to ask questions, understand sourcing, and work with a trusted jeweler who can explain pricing clearly

As the global market continues to adjust, being well-informed can help you make better buying decisions—and potentially avoid overpaying.

Updated Blog 2025 CLICK HERE