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

Bulgari Invisible Violet Necklace and Rainbow Flow Necklace
CollectionsMay 21, 2025
Bulgari Highlights Its Colorful Past in Phenomenal ‘Polychroma’ Collection

The jeweler’s high jewelry collection features extraordinary gemstones, like a 241.06-carat emerald and the world’s fourth-largest spinel.

Industry analyst Edahn Golan
ColumnistsMay 21, 2025
Edahn’s Take: Analyzing the 2025 ‘$100 Million Supersellers’ List

In a special column for the State of the Majors, Edahn Golan breaks down what the top-performing fine jewelry sellers are doing right.

Beyoncé bolo tie necklace
MajorsMay 21, 2025
Beyoncé Dons Brilliant Earth Necklace During Cowboy Carter Tour

The bolo tie necklace is inspired by “Queen Bey” and set with a nearly 15-carat black diamond.

antique_Vegas_2024_by_headshot_stories_9454.jpg
Brought to you by
Las Vegas Antique Jewelry & Watch Show: Showcasing the Most Collectible Merchandise from Across the Globe

Gain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.

Annie Doresca
MajorsMay 20, 2025
Annie Doresca to Lead DCA as New CEO, President

Current Diamond Council of America President and CEO Terry Chandler is set to retire in January 2026.

Weekly QuizMay 15, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
QVC Group logo
FinancialsMay 20, 2025
QVC Group to Voluntarily Delist from Nasdaq

The company's Series A shares will continue to trade following a reverse stock split while its Series B shares will be delisted.

National Jeweler columnist Peter Smith
ColumnistsMay 20, 2025
Peter Smith: Leading Through Change

Communicating clearly with your staff is key to navigating turbulent times, writes columnist Peter Smith.

Supplier Spotlight -Recorded-Webinar.png
Brought to you by
Watch: The Winston Red: GIA Examines the Smithsonian’s Newest Addition

Supplier Spotlight Sponsored by GIA

Luis Morais Miami Beach Flagship Interior
IndependentsMay 20, 2025
Luis Morais Opens Flagship, Launches Collection Celebrating 25 Years

The “Inner Journey” collection debuted as the brand celebrated its 25th anniversary, with designs inspired by Morais’ journey.

Exterior of Tanishq Santa Clara Storefront
MajorsMay 20, 2025
Tanishq Opens Seventh U.S. Store

Tanishq is expanding its presence in the United States with a new store in Santa Clara, California, which is its largest in the country.

New Cartier store at Los Angeles airport
FinancialsMay 19, 2025
Jewelry Sales a Standout for Richemont in 2024

Sales for Richemont’s four jewelry brands increased 8 percent, while watch sales picked up toward the end of the year.

Instappraise and NAJA logos
Events & AwardsMay 19, 2025
NAJA Opens Scholarship Applications for 2025

Two scholarships are available, one for new and non-members and another for NAJA certified members.

Day’s Jeweler’s Tuscan Village Location Painting
IndependentsMay 19, 2025
Day’s Jewelers to Open Ninth Location

The retailer’s new flagship is set to open in October at the Tuscan Village development in Salem, New Hampshire.

Saks on Amazon flagship window
MajorsMay 16, 2025
Saks Fifth Avenue, Amazon Partner on Luxury Online Storefront

Plus, parent company Saks Global announces plans to cut ties with up to 600 vendors.

Graphic for My Next Question webinar with guest Peter Smith
Recorded WebinarsMay 16, 2025
Watch: Physical Retail Is Not Dead

Peter Smith joined Michelle Graff to chat about the state of brick-and-mortar stores and share a few book and podcast recommendations.

Tejen Candy Bowl Torque Necklace
CollectionsMay 16, 2025
Piece of the Week: Tejen’s ‘Candy Bowl’ Torque Necklace

The necklace features a candy-colored Australian white opal in 18-karat Fairmined gold, as the brand was named a Fairmined ambassador.

1 Camilla Dietz Bergeron.jpg
Supplier BulletinMay 15, 2025
Treasure Hunting at the Las Vegas Antique Jewelry and Watch Show

Sponsored by the Las Vegas Antique Jewelry and Watch Show

The Mediterranean Blue diamond
AuctionsMay 15, 2025
'The Mediterranean Blue' Diamond Sells for $21M at Sotheby’s

A private American collector purchased the 10-carat fancy vivid blue diamond.

Jessica McCormack Fruit Salad Campaign Imagery
CollectionsMay 15, 2025
Jessica McCormack’s ‘Fruit Salad’ Collection Is Fresh for Summer

The designer has taken the appeal of freshly picked fruit and channeled it into a capsule collection of earrings, necklaces, and pendants.

Stock image of diamonds
SourcingMay 15, 2025
Tariffs Take Toll on India’s Gem and Jewelry Industry in April

The country’s gem and jewelry exports fell 5 percent year-over-year last month, while imports declined 18 percent.

Disability advocate Catarina Rivera, JVC ADA compliance guide, circle of hands wearing jewelry
Policies & IssuesMay 15, 2025
State of Retail: How to Better Serve Customers With Disabilities

Around 54 million Americans and counting live with a disability. Here’s how to make your jewelry store and website more accessible.

Sekou Andrews
Events & AwardsMay 15, 2025
Poet Sekou Andrews to Give Closing Keynote at Converge

The event is also accepting poster submissions now through June 16.

Pope Francis
Policies & IssuesMay 14, 2025
Here’s What Happened to Pope Francis’ Ring

Before Pope Leo XIV was elected, a centuries-old procedure regarding the late pontiff’s ring was followed.

1998 Cosmograph Daytona, Ref.16516 Rolex
AuctionsMay 14, 2025
Custom Rolex Pulled From Sotheby’s Sale

The one-of-a-kind platinum Rolex Cosmograph Daytona was estimated to fetch up to $1.7 million.

Jeweler Constance Polamalu at Bloomstone, a store that specializes in lab-grown diamonds
Lab-GrownMay 14, 2025
State of Diamonds: What’s Next for Lab-Grown Diamonds?

While the product has entrenched itself in the market, retailers and consultants are assessing the next phase of the category’s development.

Surveillance footage Tiffany & Co. Seattle robbery
CrimeMay 14, 2025
Seattle Detectives Seek Public’s Help in Tiffany & Co. Robberies

The police are trying to identify the man suspected of robbing two Tiffany & Co. locations in the area.

Jeff Corey, new chairperson of the board for the Jewelers Board of Trade
MajorsMay 14, 2025
Jeff Corey Elected Chair of JBT Board

The well-known Maine jeweler takes over for Brian Fleming and will serve a one-year term.

×

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