Pandora, the Danish jewelry giant known for its charm bracelets, is warning that President Donald Trump’s proposed tariff increases could force significant price increases across the affordable jewelry sector, potentially reshaping the American market for budget-conscious consumers.
“Some companies would go bankrupt if they did not raise prices. I think everybody is going to move ultimately, and there will be a major, major hike for the U.S. customer,” Alexander Lacik, Pandora’s chief executive officer, said after releasing the company’s first-quarter results.
The company, which generates about one-third of its sales in the United States, manufactures approximately 95% of its products in Thailand. Trump’s initial April 2 “Liberation Day” announcement included reciprocal tariffs of 37% on Thai imports. While those tariffs have been paused for 90 days and temporarily reduced to 10% for most countries pending trade negotiations, the jewelry industry is bracing for potential increases when the pause expires in early July.
Pandora initially estimated the total annual impact from the fully implemented tariffs would reach 1.2 billion Danish kroner ($182 million), with a 2025 cost of about 700 million kroner. Under current paused rates, the company faces a more manageable but still substantial impact.
“If these tariffs remain, then it’s going to be more expensive for everybody that plays,” Lacik told CNBC. “Therefore we should expect that the consumer pricing will see some change to it.”
The company has outlined two potential scenarios in its financial planning. If tariffs remain at their current level of 10% on Thailand, Pandora expects a 2025 impact of 250 million Danish kroner ($38 million). However, if the U.S. implements the higher reciprocal rates after the pause, that impact would rise to 500 million kroner ($76 million) this year, with an annualized impact of 900 million kroner ($137 million) thereafter.
A plain sterling silver Pandora bracelet currently retails for around $75, while the company’s lab-grown diamond rings start at $200. The CEO indicated that price increases would be inevitable if higher tariffs are implemented, as the company cannot absorb such significant costs internally.
While relocating manufacturing to the United States might seem like a logical response to avoid tariffs — a key strategic goal of Trump’s trade policy — Lacik firmly rejected this option. He cited both economic factors and a critical shortage of skilled craftspeople as insurmountable barriers.
“The U.S. labor cost would be completely uncompetitive,” he said. “I employ up to 15,000 craftspeople in Thailand. I can’t find that amount of talent that actually has this craft experience in the U.S. So it’s actually not so much a matter of cost to begin with, it’s about having skilled people who can actually craft the jewelry.”
Instead, Pandora is pursuing alternative strategies, including accelerating cost-cutting measures and reorganizing its supply chain. By early 2026, the company plans to ship jewelry directly to Canada and Latin America rather than through its Baltimore distribution center, potentially mitigating some tariff impacts.
The company believes its global reach across more than 70 countries and strong gross margins provide flexibility to weather the tariff storm better than smaller competitors. Pandora has already implemented a 4% price increase in April and is considering further adjustments depending on how the tariff situation unfolds.
Despite these challenges, Pandora maintained its 2025 organic growth guidance of 7-8%, though it reduced its operating profit margin forecast by 50 basis points to around 24%, citing U.S. dollar weakness rather than tariff concerns.
“This isn’t the worst we’ve been through,” Lacik said, describing the tariff drama as “unwelcome noise, but we can deal with it.” The company remains optimistic about its resilience, noting that its gifting-focused business model has historically performed well even during economic uncertainty.
For American consumers, however, the message is clear: those eyeing Pandora’s popular charm bracelets or other affordable jewelry might want to make their purchases before potential price increases take effect. The affordable jewelry landscape could look significantly different if Trump’s full tariff agenda is implemented after the 90-day pause expires.
“The reality is, I don’t see a scenario where, if there is a 40 percent tariff imposed, people would not raise their prices,” Lacik said.
