Running a small business is never easy, and for companies that import or manufacture internationally, recent developments have made it even more challenging. U.S.-based jewelry businesses are now grappling with major disruptions in their supply chains due to fluctuating tariffs on Chinese imports. As of May 12, 2025, a temporary 90-day agreement has lowered these tariffs from 145% to 30%. While this reduction offers short-term relief, the situation remains unpredictable, creating uncertainty for businesses trying to plan ahead.
The rising cost of imported goods is placing additional financial strain on businesses, many of which are being forced to pass these expenses on to consumers already feeling the impact of inflation and shrinking disposable income. This chain of events is weakening consumer purchasing power and increasing the pressure on small businesses striving to stay afloat.
As U.S. jewelry businesses face challenges due to tariff fluctuations on Chinese imports, Thailand sees itself as a key alternate for sourcing silver jewelry. Thailand’s gem and jewelry exports reached USD 8.6 billion in Q1 2025, reflecting a 109.88% year-on-year increase. In the first half of 2024, silver jewelry exports totaled $842.41 million, a 19.51% increase from the previous year.
This growth underscores Thailand’s ability to meet rising international demand, particularly in markets like the United States, Germany, and Australia, where consumers are increasingly seeking affordable alternatives to gold.
According to industry experts, the implications of the US-China tariffs could inflict “irreversible” damage on American businesses, particularly within the jewelry sector, where suppliers play a critical role in maintaining price stability. The rising costs, coupled with increasing supply chain disruptions, are creating a precarious situation for many jewelers.
Silver jewelry has become a key trend as consumers seek durable options that won’t break the bank. Experts predict that 2025 will see a marked rise in the popularity of sterling silver, presenting an opportunity for brands to lower their overhead while meeting shifting consumer preferences.
Thailand’s manufacturing sector is well-equipped to meet these challenges, adhering to stringent international standards, including ASTM and REACH, ensuring compliance with US consumer product regulations. US-based companies can benefit from Thailand’s skilled labor force and lower production costs, mitigating the financial risks associated with escalating tariffs.
Moreover, government incentives aimed at fostering foreign investment, combined with Thailand’s advantageous geographical position in Southeast Asia, contribute to lower shipping costs, making the transition to Thai suppliers even more attractive.
As the jewelry industry braces for continued economic challenges, the shift towards sourcing from Thailand could not only safeguard existing businesses but also pave the way for future growth. By embracing new supply chain strategies, US jewelry brands are poised to enhance their resilience and remain competitive in a rapidly changing market.
With the clock ticking on the impacts of tariffs and rising costs, now is the time for American jewelers to explore the opportunities that Thailand presents for future-proofing their operations. In navigating these turbulent waters, businesses that adapt quickly may find themselves thriving, rather than just surviving.
About Phoenix Manufacturing Co., Ltd.
Based in Thailand, Phoenix Manufacturing Co., Ltd. specializes in the production of sterling silver and custom-designed jewellery. With decades of experience serving clients worldwide, the company offers comprehensive production solutions, white-label services, and a commitment to ethical sourcing supported by certifications such as RJC, SEDEX, and AMFORI BSCI. Renowned for its exceptional craftsmanship, reliable global shipping, and dedication to responsible business practices, Phoenix is a preferred partner for retailers and brands across the United States, Australia, and beyond.
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