“I’ve been thinking about what this means for ANZA GEMS, LLC and our MoyoGems collaboration,” writes Monica Stephenson, president of ANZA Gems, in her LinkedIn post. “There is no doubt that an additional 10% tariff on the rough gems we import into the U.S. from Tanzania and Kenya will have an impact eventually.”
“I already pay 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 U.S. (Kenya slightly less).”
Short Supply Chain Benefits
“We are fortunate,” says Stephenson. “We source exclusively from Tanzania and Kenya—with the minimum tariff amount—and have the majority of our gems faceted in United States. Thanks to our direct and short supply chain, we know PRECISELY where things come from and export via official channels. We have transparency and accountability, so we are well-prepared for this new world.”
Inventory Helps Reduce Sticker Shock
“I have a large stock of rough gems that I will continue to have faceted, and so I do not anticipate raising prices for as long as we can continue to process this older material.”
U.S. Labor vs. the Rest of the World
“From the raw materials, to the labor necessary to transform and make products, the U.S. has historically had a hard time competing on price with faceting gems or manufacturing jewelry in the last 100 years. Our U.S. labor (in this case skilled craftsmanship) is often just more expensive than the market will pay. Not only will this manufacturing deficit not be solved overnight (or even in 10 years), the reality is that most Americans don’t want the lowest-paid jobs anyway. The US has been generating the most well-rewarded, high-margin jobs and earnings based on less expensive materials and components from elsewhere, and we generally have taken great care of our own interests.”
Made in America?
“For those in the jewelry industry who have tried for ‘made in America’ designation through manufacturing and materials, it is actually IMPOSSIBLE to make that claim simply because our materials come from literally all over the globe! The idea that we can just switch to U.S.-based providers for materials or components is a glittery fever dream. This is not just a ‘stock market’ or ‘rich person’ problem. This disastrous tariff decision is going to make it much, much harder for most of the smaller independent makers and suppliers to continue to do business.”
Prices Will Go Up
“Prices will have to go up,” says Stephenson. “Demand will soften for our products.” After all, they are a luxury. “This won’t just hurt the industry in the United States. It will irreparably harm the already-fragile economies for those who mine or process our materials overseas.”
Let’s Start with Greater Transparency
“Let’s be thoughtful. It’s time for more transparency in our industry. In order to survive this, we will have to create solutions to take care of each other and especially the most vulnerable.”
