Pandora Warns of Significant U.S. Jewelry Price Increases Due to Potential Asian Import Tariffs

Pandora, a Danish jewelry company, warns of potential price hikes in the U.S. due to proposed tariff increases on Asian imports. The tariffs could rise from 10% to 37%, significantly impacting costs. Pandora, which manufactures mainly in Thailand, is preparing for scenarios including further price increases and supply chain changes. The company has already raised prices twice in the U.S. and revised its 2025 profitability guidance. Pandora plans to reroute shipments to Canada and Latin America to mitigate tariff impacts, while maintaining its manufacturing base in Asia due to cost and skill considerations.

Tariff Threats Put Pressure on Jewelry Supply Chains

Pandora, the world’s largest jewelry brand by volume, is among the most exposed European companies to the proposed U.S. tariff increases targeting Asian imports. The company manufactures the vast majority of its products in Thailand, where it operates two major factories employing thousands of skilled craftspeople. Additional production is sourced from Vietnam, India, and China.

These countries were hit with steep reciprocal tariffs—ranging from 26% to 46%—under President Donald Trump’s April 2 “Liberation Day” trade policy announcement. While a 90-day grace period was introduced shortly after, temporarily reducing tariffs to 10% for most countries (excluding China), the uncertainty surrounding what will happen after the pause ends in early July has left companies like Pandora in limbo.

CEO Alexander Lacik told CNBC that the current 10% tariff is “manageable,” but warned that if rates rise to 30% or more, “then the world changes.” He added, “Most jewelers that are in the price segment where we operate, they all import from somewhere in Asia. So you could have an argument if these tariffs remain, then it’s going to be more expensive for everybody that plays.”

Price Increases Already Underway

In anticipation of rising costs, Pandora has already implemented two rounds of price increases in the U.S.—a 5% hike in October 2024 followed by another 4% in April 2025. These adjustments were initially driven by the rising cost of silver, a key material in its jewelry. However, the company now says further increases are likely if tariffs escalate.

“In both scenarios, Pandora will consider further price increases,” the company said in a statement, referring to both the continuation of the 10% tariff and the potential reversion to higher rates. The exact timing and scale of future price hikes will depend on how the tariff situation unfolds.

A plain sterling silver Pandora bracelet currently retails for around $75, while its lab-grown diamond rings start at $200. If tariffs rise to 30% or more, these prices could increase significantly, according to internal modeling by the company.

Financial Impact and Revised Guidance

Pandora has already revised its 2025 profitability guidance in light of the tariff uncertainty and a weakening U.S. dollar. The company now expects an EBIT margin of around 24%, down from its previous forecast of 24.5%. While it maintained its organic growth target of 7% to 8% for the year, the revised margin excludes the potential impact of tariffs beyond the current 90-day pause.

If the 37% tariff on Thai imports is reinstated, Pandora estimates a cost impact of 500 million Danish kroner ($76 million) in 2025 and 900 million kroner ($137 million) annually thereafter. This is a reduction from its earlier forecast of 1.2 billion kroner, as the company plans to reroute some shipments directly to Canada and Latin America by early 2026, bypassing its U.S. distribution center in Baltimore.

Even under the current 10% tariff, Pandora expects a cost impact of 250 million kroner ($38 million) this year and 300 million kroner ($46 million) annually going forward.

Supply Chain Adjustments and Strategic Response

To mitigate the impact of the tariffs, Pandora is actively exploring changes to its supply chain. The company plans to begin shipping products directly from Thailand to Canada and Latin America by early 2026, reducing its reliance on the U.S. as a regional distribution hub. This shift is expected to lower the company’s exposure to U.S. tariffs on goods not destined for the American market.

Despite the challenges, Pandora remains committed to its long-term “Phoenix strategy,” which focuses on brand growth and product innovation in the accessible luxury segment. “We do not control the external factors, but we do control how we execute on an already proven strategy that is growing our business,” Lacik said.

However, the CEO ruled out relocating manufacturing to the U.S., citing high labor costs and a lack of skilled artisans. “The U.S. labor cost would be completely uncompetitive,” he said. “I employ up to 15,000 craftspeople in Thailand. I can’t find that amount of talent that actually has this craft experience in the U.S.”

Industry-Wide Implications

Pandora’s warning comes amid broader concerns across the retail and manufacturing sectors about the impact of escalating tariffs on Asian imports. According to data from Interos.ai, nearly half of all jewelry, clothing, toys, and candy imported into the U.S. originates from China, India, and Hong Kong. The proposed tariffs could significantly disrupt these supply chains and drive up prices for American consumers.

Lacik emphasized that the unpredictability of the trade environment is a major concern for businesses. “The more worrying thing in all this is that it’s not predictable,” he said. “I think this plagues most people like myself that sit on the business side of things.”

References

• Pandora warns U.S. tariffs will spark sweeping jewelry price increases
• Jeweller Pandora trims 2025 profitability guidance, warns of US tariff impact
• Pandora warns that tariffs will lead to higher prices
• Pandora Sales Rise in First Quarter as Company Braces for U.S. Tariff Hike
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