Sourcing

Tariffs & Colored Gemstones: Relying on Stock, Considering the Ripple Effect

SourcingMay 01, 2025

Tariffs & Colored Gemstones: Relying on Stock, Considering the Ripple Effect

Though currently paused, high tariffs threaten many countries where gemstones are mined. Dealers are taking measures now to prepare.

Americut Gems
Montana sapphire supplier Americut Gems Inc. said following President Donald Trump’s “Liberation Day” announcements, it saw a spike in inquiries from jewelers who anticipate an increase in customer interest in the domestically mined gemstone, pictured above.
New York—In early April, President Donald Trump announced a slate of so-called reciprocal tariffs and then, the following week, paused the deployment of the new rates for 90 days. 

Although the higher tariffs were only in effect for about 13 hours, Trump’s initial announcement rattled the jewelry industry, with rates between 10 and 50 percent (Lesotho) on imports from many countries where gemstones are mined. 

While the pause is slated to remain in effect until July, a baseline tariff of 10 percent, which is applied in addition to existing duties, remains in effect for most countries.  

China is excluded from the pause; it currently faces a slew of tariffs (in some cases exceeding 200 percent), with rates varying by product.  

Colored gemstone dealers, especially those who source from several different countries, are not only adjusting to the new baseline tariff but also preparing for what may happen in July, when the 90 days is up. 

In interviews with National Jeweler, some relayed feelings of cautious optimism regarding the potential for a trade agreement prior to the end of the pause, and industry associations said they already are lobbying for exemptions for gemstones. 

Others worry about the ripple effect the tariffs will have overseas in countries where the gemstone trade supports entire communities.  

 “This has potentially really dramatic, devastating repercussions.”— Monica Stephenson, Moyo Gems and Anza Gems

For dealers like Monica Stephenson, co-founder of Moyo Gems, a collaboration with the female artisanal miners of Tanzania’s Umba Valley, and president of Anza Gems, the end of the pause won’t change the rates. 

Stephenson sources exclusively from Tanzania and Kenya, and imports from both countries will still face a 10 percent tariff, the minimum in the slate of rates announced.

In a LinkedIn post, she wrote that, prior to the tariffs, she paid the Tanzanian government “about 7% (6 + 1% on the value of gems exported) plus export and other fees outside of the cost of shipping to the US (Kenya slightly less).”

She recently started having some gemstones cut in Thailand, but for the most part, Stephenson has her gems faceted in the U.S. 

She said her company’s short and direct supply chain, with materials traceable to the source, makes her feel more prepared to adjust to geopolitical and economic turbulence.   

As a business owner, knowing precisely where materials come from and being familiar with the export process can mean fewer complications when it comes to ensuring compliance.

Her initial plan is to continue have old stock of rough gems faceted, and she doesn’t anticipate raising prices for as long as she can process old material. 

Jade supplier Mason-Kay Jade also is relying on its current stock.

Much of Burmese jadeite jade is sold through China, but, since the U.S. sanctions on Burmese gemstones were implemented in 2003 and 2008, the company has bought second-hand jadeite jade domestically. 

The company purchases much of what is offered, as it is able to test the gemstones to confirm they are natural jadeite.

Other buyers often consider the jade to likely be treated—which Mason-Kay owner Jeff Mason called a “wise concern”—and will only pay for settings. 

In an email sent to its partners regarding the tariffs, Mason-Kay said in part, “We are well stocked with natural jadeite jade at pre-tariff prices and will continue to provide you with our certified natural jadeite jade jewelry and loose goods, as well as jade testing and valuation services. 

“Now is an excellent time to certify your jade jewelry for insurance or resale values.”

Mason-Kay Jade Guatemalan jade
A selection of Guatemalan jade from Mason-Kay Jade

While it has recently started working with Guatemalan jadeite cutters, as more gem-quality jadeite has been discovered in the country, Mason-Kay Jade has worked with cutters in China for years. 

While the “reciprocal” tariffs are on pause, China currently is embroiled in a trade war with the United States, and Chinese imports into the U.S. are heavily taxed.

While the current tariff rate has been widely reported as 145 percent, in reality, it’s more nuanced, with rates varying for different products. 

The percentage applied to gemstones imported from China is not immediately clear. 

As of press time, Mason said he was awaiting paperwork for recent shipments from China of what he called “lower-priced items,” like repairs and special orders, to see the exact rates for those. 

“If the tariffs on China remain, and gemstones do not receive an exemption, we will seek other sources like Thailand, Taiwan, etc.,” Mason said.  

“We prefer not to have to develop new cutters after establishing many good relationships with Chinese cutters for decades, but we will if we must.”  

Mason thinks a trade agreement between the U.S. and China is likely, adding, “We are confident that our industry will be able to gain an exemption for gemstones, as very few actually come from within the borders of the U.S.” 

 Related stories will be right here … 
 
The American Gem Trade Association has engaged a lobbyist in Washington, D.C., who specializes trade issues, AGTA CEO John Ford said in an email to National Jeweler.

“AGTA is actively engaged in seeking the end of the baseline tariffs on loose colored gemstones imported into the United States,” he wrote. “We are also very concerned and addressing the reciprocal tariffs issues.” 

Stephenson, of Anza Gems, worries not only about how the tariffs will affect her business but also the mining communities she works with and the entire gem trading eco-system.

When National Jeweler spoke with her Wednesday, she was actively buying from the Moyo market, a buying event that happens three to four times a year in Tanzania.

Moyo market day Tanzania
A Maasai woman at the Tanzania Moyo Market Day in April


“I wired my money and [my export broker] is buying on my behalf right now so we are continuing to support our miners globally,” she said. 

“I’m going to be chasing down my customs broker to get more information on what it’s going to take to actually get that package imported to the U.S. at this point.”

The organizers of the buying events relay the market dates to the miners, many of whom are in remote regions, in advance, so this particular market day was scheduled before Trump announced the tariffs.

“To suddenly pull back on that would be pretty devastating for the local economy,” Stephenson said. “We felt it was really important to go ahead and proceed with the scheduled market day and, as far as I know, we’re going to also proceed with a market day in late summer as well.”

Stephenson noted the complicated nature of the colored gemstone supply chain and said that, because substantial transformation (cutting) might happen in a different country than where a gem was mined, the tariffs also will impact cutters, brokers, manufacturers, and all others who help facilitate these transactions.

For the mining communities with a subsistence economy whose members depend on this eco-system, “This has potentially really dramatic, devastating repercussions,” she said.

Stephenson also added that while U.S. jewelry companies can, over time, develop top-of-the-line production domestically, the raw materials still are going to have to come from other countries, making these global communities vital to the supply chain.

However, some jewelers are still looking to increase their domestic sourcing wherever possible. 

Rachel Hill, owner of Montana sapphire supplier Americut Gems Inc., said in the days following the initial announcement of the tariffs, she was contacted by retail customers who said they were anticipating an increase in customer interest in the gemstone.

Montana sapphire rough
Rough Montana sapphires from Americut Gems Inc.


They wanted to know if Americut Gems’ supply could meet the demand and shared concerns about whether or not the company could handle the increased traffic expeditiously. 

Regardless of whether or not the supplier can keep up, Hill noted that isn’t a complete solution to the global issue.  

“Unfortunately, domestic precious stone mining as a solution to the tariff problem is very limited. For the most part, it begins and ends with sapphires mined in Montana,” she said. 

“I think there’s a lot of flexing going on right now but eventually, when the dust settles—and you could call it wishful thinking—I think we will be OK. I think we can navigate.” – Benjamin Hakimi, Colorline

Benjamin Hakimi of Colorline in New York deals in sapphires and rubies sourced from various Asian and African countries.  

His company is keeping an eye on the tariffs on Sri Lanka (originally proposed at 44 percent), Madagascar (47 percent), Thailand (36 percent) and Mozambique (16 percent), although each has been dropped to 10 percent as part of the 90-day pause. 

“It’s one thing to have [tariffs] on finished jewelry that is manufactured in Thailand, or worse China, but we’re bringing in raw material, and it’s going to create employment at different levels,” he said, referring to the cutters, setters, polishers and bench jewelers employed in the U.S. 

While even the 10 percent tariff is still higher than what the company was paying before, Hakimi said he is hopeful that ongoing negotiations with “friendly” nations, like Thailand, will be successful, and the rates won’t increase beyond that.  

He continued, “I think there’s a lot of flexing going on right now but eventually, when the dust settles—and you could call it wishful thinking—I think we will be OK. I think we can navigate.” 

The Latest

Sothebys The Desert Rose orangy pink diamond collectors week
AuctionsAug 29, 2025
Sotheby’s UAE Sale to Feature 32-Carat Fancy Vivid Orangy Pink Diamond

The highlight of a single-owner jewelry and watch collection, it’s estimated to fetch up to $7 million at auction this December.

Calvin Klein watch and jewelry campaign
FinancialsAug 29, 2025
Movado’s Q2 Sales Rebound Despite Tariff Impact

CEO Efraim Grinberg noted a resurgence in the fashion watch market.

Mark Davis Bullseye Necklace
CollectionsAug 29, 2025
Piece of the Week: Mark Davis’ ‘Bullseye’ Necklace

The “Bullseye” necklace, with vintage bakelite and peridot, August’s birthstone, is the perfect transitional piece as summer turns to fall.

japac-btyb.png
Brought to you by
Rallying Call for the Jewelry Industry on Tariffs and Other Key Issues

Jewelers of America is leading the charge to protect the industry amidst rising economic threats.

Image #1_Resized.png
Supplier BulletinAug 28, 2025
Clientbook Is Helping Jewelers Turn Clienteling Challenges into Wins with Hands-On Training and Coaching

Sponsored by Clientbook

Weekly QuizAug 29, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
GIA’s new report for lab-grown diamonds
GradingAug 28, 2025
GIA’s New ‘Quality Assessment’ for Lab-Grown Diamonds Is Coming

It will classify lab-grown stones into one of two categories, “premium” or “standard,” in lieu of giving specific color and clarity grades.

Afton Robertson-Kanne Borsheims
MajorsAug 28, 2025
Borsheims Names New Jewelry Buyer

Former Free People buyer Afton Robertson-Kanne recently joined the retailer.

rio-article photo-diamond.jpg
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine Jewelry

As a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.

Sissy’s Log Cabin Back to School and Bling
IndependentsAug 28, 2025
Sissy’s Log Cabin Donates School Supplies to Memphis Students

The jeweler teamed up with two local organizations for its inaugural “Back to School and Bling” event.

Taylor Swift Engaged
EditorsAug 27, 2025
Taylor Swift’s Engagement Ring Is a Fairy Tale for Vintage Diamond Cuts

The singer’s new bling, reportedly a natural old mine-cut diamond, is no paper ring.

Shopping cart
SurveysAug 27, 2025
Consumer Confidence Slips in August Amid Job, Income Worries

Plans for dining out, booking vacations, and buying big-ticket items were down.

Mine + Found Play Collection Prize Bubble Locket, Whistle Pendent, Fortune Dice
CollectionsAug 27, 2025
Mined + Found’s New Collection Gets Playful

The “Play” collection centers on nostalgic toys that have kinetic elements to carry playfulness and wonder into adulthood.

CCWW lifesaver necklace
CollectionsAug 26, 2025
Does Your Jewelry Stack Need a Snack?

Designer Christina Puchi, the creative force behind CCWW Designs, has created charms and pendants based on iconic candies and crackers.

Nick Jonas x Fossil Campaign
WatchesAug 26, 2025
Nick Jonas Gets Nostalgic in New Fossil Campaign

The Jonas Brothers star showed off new timepieces against the backdrop of his favorite spots in his home state of New Jersey.

Wally Hinkamp and Donna Hinkamp Warren
IndependentsAug 26, 2025
Hinkamp Jewelers Celebrates 70 Years

The family-owned jeweler in Fayetteville, North Carolina, is in the hands of the second generation.

Emmanuel Raheb
ColumnistsAug 26, 2025
Back to School, Back to Style: Why August is Prime Time for Self-Gifting

In his latest column, Emmanuel Raheb shares tips for encouraging customers to treat themselves to new jewelry.

London Jewelers Rolex East Hampton Boutique Exterior
WatchesAug 25, 2025
London Jewelers Brings Rolex to Historic Hamptons Home

The new stand-alone Rolex boutique is housed in the former Odd Fellows Hall, a landmark built in 1897.

Madison Keys
CollectionsAug 25, 2025
Tennis Star Madison Keys Has the Perfect Necklace for the US Open

The Brilliant Earth ambassador co-designed a diamond medallion featuring meaningful symbols.

Marie Lichtenberg emerald and diamond locket on the 18-karat gold “Rosa” chain
TrendsAug 25, 2025
Amanda’s Style File: That’s a Wrap

Wrap jewelry is more than just a trend; it’s the perfect motif for the coming season of layering, scarves, and pumpkin spice.

WatchTime New York
WatchesAug 25, 2025
WatchTime NY Show Returns for 10th Anniversary Edition

The three-day watch collector show, coming this October, will feature 44 exhibiting brands, as well as a new dinner experience.

Sriram “Ram” Natarajan
GradingAug 22, 2025
Former Head of GIA India Promoted to Oversee Global Operations

Sriram “Ram” Natarajan is now GIA’s senior vice president of laboratory operations and is based out of the lab’s headquarters in Carlsbad.

Retrouvaí Diamond Vein Bond Collar
CollectionsAug 22, 2025
Piece of the Week: Retrouvaí’s ‘Diamond Vein Bond’ Collar

The one-of-a-kind collar represents the beauty of imperfection and the strength to rebuild.

Kendra Scott
MajorsAug 22, 2025
Kendra Scott Returns as CEO of Her Jewelry Empire

Three C-suite executives, including former CEO Tom Nolan, have resigned as part of what the company describes as a “transition.”

Claire’s storefront
MajorsAug 21, 2025
Claire’s Finds Buyer, Could Save up to 950 Stores

The retailer, which recently filed Chapter 11, inked a deal to sell its North American business and intellectual property.

Target CEO Brian Cornell and COO Michael Fiddelke
MajorsAug 21, 2025
Target Names New CEO as Sales Continue to Lag

Target CEO Brian Cornell will step down in February and be replaced by the company’s chief operating officer, Michael Fiddelke.

Jewelers of America in Washington DC
Policies & IssuesAug 21, 2025
JA, IDMA Talk Tariffs With Execs in DC

The group met with the president's senior trade advisor earlier this week to express the industry’s concerns about the effects of tariffs.

Tiffany & Co. Pop Up at U.S. Open
MajorsAug 21, 2025
Tiffany & Co. Pops Up at 2025 US Open

The pop-up will display this year's Tiffany & Co. Singles Championship trophies along with a diamond-encrusted tennis racket and ball.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy