Pandora, the world’s largest jewellery maker, is reorganising its supply chain due to continued uncertainty surrounding US tariffs under former President Donald Trump.
The Danish company will now ship products from its main factory in Thailand directly to markets like Canada and Latin America. Until now, these items were routed through a US-based warehouse, chief executive Alexander Lacik told the Financial Times.
The move comes as investors react to the risk of rising tariffs. Pandora shares, listed in Copenhagen, have dropped by 6 per cent since the US administration first announced new trade duties.
Thailand, which produces the bulk of Pandora’s products – including its popular £35 bracelet charms – was hit with a 37 per cent tariff. That charge has been postponed until July, but the future remains unclear.
“Nobody knows what will happen 75 days from now,” Lacik said, referring to the timeline for the postponed tariffs.
He also pushed back against Trump’s push for companies to manufacture more goods in the US, arguing that Pandora relies on regions with strong craftsmanship traditions.
“The idea of moving production to the US is a bit of a dream,” he said.
The company has estimated that a 37 per cent tariff could cost it as much as £100 million per year. Even if the current 10 per cent duty remains in place, Pandora warned that prices are likely to rise.
Despite these concerns, demand in the US remains strong. In the first quarter of the year, Pandora reported an 8 per cent increase in sales, reaching £830 million, as American consumers continued to spend on jewellery.
Following the earnings report, Pandora’s share price rose by 1.7 per cent.
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