As a jewelry store owner, you're part artist, part gemologist, and part storyteller. You spend your days curating beautiful collections and helping clients celebrate life's biggest moments. The last thing you want to get bogged down in is customs paperwork.

But here’s the reality: one little word from the world of international trade can have a massive impact on your bottom line. That word is tariffs.

So, what are they? Simply put, tariffs are taxes you pay on imported goods. And in the jewelry business, almost everything is imported—finished pieces from Italy, loose sapphires from Thailand, or even the beautiful boxes you present your engagement rings in. When you're dealing with gold, diamonds, and precious gems, even a small tariff percentage can mean thousands of dollars added to your cost.

This guide will walk you through the seven essential steps to get a handle on how tariffs affect your business. Think of it as your roadmap to making smarter buying decisions. Now, this world is famously complex, so for the really specific, high-stakes questions, you’ll always want to partner with a professional customs broker. They are worth their weight in gold (pun intended).

Ready to protect your profits? Let's dive in.

Step 1: Map Your Entire Jewelry Supply Chain

A cargo ship brings plenty of tariffed goods to the US shores

You can't control costs you don't fully see. The first step is to get radically honest about where every single component of your inventory comes from. Tariffs are based on what a product is and its country of origin, so you need the full picture.

Your Action Plan: Grab a notebook and list everything you import. Get granular.

Finished Jewelry: That line of sterling silver bracelets from Bali or the 18k gold chains from Italy.
Loose Gemstones & Diamonds: Where are those GIA-certified diamonds really from? Where were they cut and polished?
Findings & Components: Think clasps, earring backs, settings, and pre-made chains.
Raw Materials: Casting grain, gold and silver wire, etc.
Packaging & Displays: Don't forget your branded boxes, pouches, and showcase displays if they come from overseas.

This list is your new best friend for figuring out your financial exposure.

Step 2: Classify Your Pieces with an HS Code

A certificate of a produce coming from China

Every product that crosses a border needs an official classification code. Think of it like a GIA certificate for your product's category.

HS (Harmonized System) Code: This is the 6-digit international code for a product category.
HTS (Harmonized Tariff Schedule) Code: This is the 10-digit U.S.-specific code that builds on the HS code. This is the number that determines your exact tariff rate.

As a jeweler, you’ll be spending most of your time in Chapter 71 of the HTS, which covers pearls, precious stones, precious metals, and jewelry.

How do you find the right code?

The easiest way is to ask your supplier. They ship internationally all the time and should have the codes on hand. If not, you can search the government's HTS database.

Be precise here. Classifying a platinum semi-mount as a finished ring can cause a shipment of engagement rings to be held up for weeks, leading to angry clients and lost sales.

Step 3: Pinpoint the Country of Origin

This is where it gets tricky for jewelers. The country of origin is where an item was manufactured or "substantially transformed."

Crucially, it's NOT necessarily where you bought it or where it shipped from.

Here's a classic jewelry example: You order a beautiful sapphire ring from your trusted supplier in Bangkok. The ring itself was cast and set in Thailand, but the main sapphire was mined and cut in Sri Lanka, and the tiny pavé diamonds came from India. The "rules of origin" to determine that ring's single country of origin are incredibly complex.

This is a huge deal because of trade agreements and special tariffs (like those on Russian-origin diamonds). Getting this wrong is easy to do and can be very costly. This step alone is why having a great customs broker is a non-negotiable for most jewelers.

Step 4: Research the Tariff Rates for Your Jewelry

Okay, you have your HTS code and country of origin. Now you can play detective and find the tariff rate.

Using the official HTS search tool, you can look up your 10-digit code. A loose, unset ruby will have a different code and tariff rate than that same ruby once it's set in a platinum ring. The "General" rate will apply to most countries, but always check the "Special" column for lower rates from countries with U.S. trade agreements.

Be sure to look for any additional duties (like anti-dumping or countervailing duties) that might be layered on top.

Step 5: Do the Math on Your Landed Cost

an image of a math formula on a whiteboard

Let's see the real-world impact on your showcase cost. The formula is simple:

(Value of Your Jewelry Shipment)×(Tariff Rate)=Your Tariff Cost

This tariff cost is a major part of your landed cost—the true, all-in cost to get a piece from your supplier's bench to your display case.

Quick Example: 14k Gold Tennis Bracelets from Italy

Value of Your Shipment: $25,000
HTS Code: 7113.19.50
Tariff Rate from Italy: 5% (hypothetically)

The Math: $25,000 x 5% = $1,250

That's an extra $1,250 added to your cost before you've even calculated your markup. Knowing this number is critical for proper pricing.

Step 6: Think Strategically About Your Business

A person sticks a yellow sticky note on a white board and writes on it

Now that you have the numbers, what do you do with them?

Markup & Margins: How does this tariff impact your keystone or desired markup for a piece?
Pricing Strategy: Do you absorb the tariff on a key engagement ring style to stay competitive, or do you have to pass that cost on to the customer?
Competitive Landscape: How can you compete with an online-only store that might be sourcing from a country with a 0% tariff?
Cash Flow: You're paying these tariffs upfront. How does a $5,000 tariff bill on a large diamond shipment affect your cash for the month?
Sourcing: Is the tariff from one country so high that it makes sense to find a new manufacturing partner in a country covered by a Free Trade Agreement, like Mexico or Canada?

Step 7: Stay Updated & Know When to Call the Pros

A broker works on tariff implementation on his macbook

Trade policies change. A tariff rate that is 5% today could be 15% next year. It's smart to review your costs every quarter and stay informed through resources like the Jewelers Vigilance Committee (JVC).

And honestly, know when to bring in an expert. For high-value jewelry shipments, a customs broker isn't a luxury; they're essential insurance against costly mistakes. Call a pro if you're:

Dealing with complex pieces with materials from multiple countries.
Facing a large tariff bill.
Want to explore advanced strategies to legally reduce duties.
Facing an audit from Customs.

Let Your Passion Be Jewelry, Not Tariffs

Your time and energy are best spent helping clients find the perfect piece, not stressing over customs forms. The goal is to understand the landscape so you can plan effectively and protect your passion and your profits.

To make this much easier, we've created a simple worksheet to help you track your products and calculate your landed costs, all in one place. Click Here to Grab Your Free Jeweler's Tariff & Landed Cost Worksheet!

In today's market, smart financial planning goes hand-in-hand with brilliant marketing. A strong brand story helps you sell the value and artistry behind your pieces, making price less of an issue. Whether you need powerful e-commerce content marketing or focused engagement ring content marketing, we can help you shine.

At BitterRoot, we partner with jewelers to create marketing that drives desire and sales. If you're ready to grow, let's talk. You can also request more information about our services here.

7 Steps to Navigating Tariffs headache Free