Danish jewelry brand Pandora has warned that jewelry prices across the U.S. could rise sharply if President Donald Trump’s proposed tariff increases go ahead. The warning follows the White House’s decision in April to pause tariff hikes for 90 days.
Pandora CEO Alexander Lacik told CNBC that current tariffs of 10% on most U.S. imports are “manageable.” However, if tariffs increase to the higher levels previously suggested by the Trump administration, the impact could be significant for the entire jewelry industry.
“Most jewelers operating in our price range import products from Asia,” Lacik said in an interview with CNBC’s Charlotte Reed. “If these tariffs stay in place, prices will rise for everyone. That means consumers should expect to see higher prices.”
Pandora is known for its charm bracelets and silver jewelry. It relies heavily on manufacturing in Asia, especially in Thailand, as well as Vietnam, India, and China.
On April 2, Trump announced new tariffs as part of his “Liberation Day” economic policy. These tariffs targeted several Asian countries, with rates ranging between 26% and 46%. Pandora responded quickly, warning that such tariffs could hurt its revenues by about 1.2 billion Danish kroner (around $182 million) each year.
Following the backlash, Trump introduced a 90-day pause and reduced the tariff rate to 10% for most countries, except China. However, it remains unclear what the tariff rates will be once the pause ends in early July.
When asked how much prices might increase, Lacik said Pandora has prepared several scenarios. But he noted that the final price changes would depend on how the entire industry responds.
“We can all guess whether it will be 34% or 40%,” he said. “We’ve run different models. But we don’t act alone. We have to see what the rest of the market does.”
Lacik explained that if tariffs stay at 10%, Pandora will likely avoid price hikes. But if tariffs rise to 30% or more, the company would need to make big changes.
“In that case, the whole situation changes,” he said. “There are many ways to think about it. We’ll have to wait and see what happens.”
A basic sterling silver Pandora bracelet currently costs about $75. The company’s lab-grown diamond rings start at $200.
On Tuesday, Pandora kept its forecast for 2025 organic growth at 7% to 8%, despite what it called “elevated macro uncertainty.” However, it cut its expected operating profit margin by 0.5 percentage points, now targeting around 24%. Lacik blamed this adjustment on the weak U.S. dollar.
The new forecast does not include the possible effects of new tariffs after the 90-day pause. Pandora said it will update its outlook once more information becomes available.
“We haven’t changed our numbers yet because, as of today, we don’t know what’s going to happen,” Lacik said.
By 1:55 p.m. London time, Pandora shares were up 2.3%.
Pandora Says U.S. Manufacturing Is Not an Option
Pandora employs about 8,000 people in the U.S., mainly in its retail stores. However, Lacik ruled out moving manufacturing to the U.S., which is a major goal of President Trump’s tariff plan. He said the costs would be too high.
“Labor in the U.S. is too expensive,” Lacik said. “If we made our products here, we would have to raise prices significantly.”
He added that the U.S. also lacks enough skilled workers to craft Pandora’s handmade jewelry.
“I have around 15,000 craftspeople in Thailand,” he said. “You can’t find that level of skill or that many experienced workers in the U.S. It’s not just about cost — it’s about having the right people.”
Lacik also said that business uncertainty is another reason Pandora is hesitant to expand in the U.S., even though other industries like pharmaceuticals and automobiles are increasing their U.S. investments.
“The biggest concern here is unpredictability,” he said. “That’s what troubles business leaders like me the most.”
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