Key points
- The imposition of a 10 per cent tariff on April 9 already led to a noticeable dip in some sectors, especially mass-market, lower-margin products that are highly sensitive to price fluctuations.
- In a dramatic turn for Thailand’s gem and jewellery trade, a temporary suspension of harsh US tariffs earlier this year led to an unprecedented export boom.
- According to Sidthisak Limvatanayingyong, President of the Thai Silver Exporters Association, a considerable bulk of these shipments occurred during the early months of the year, fueled by American buyers’ attempts to sidestep impending price hikes.
Bangkok Gems News: Record Breaking Export Surge Before Tariffs Hit
In a dramatic turn for Thailand’s gem and jewellery trade, a temporary suspension of harsh US tariffs earlier this year led to an unprecedented export boom. From January to May 2025, the country’s exports in this glittering sector reached a staggering US$12.1 billion, nearly doubling the US$6.3 billion recorded during the same period last year.
Thai gems and jewellery exports surged in the first half of 2025
Image Credit: StockShots
This Bangkok Gems News report reveals that the explosive growth came during a three-month window of opportunity—from April 9 to July 31—when Thailand was granted a short-lived tariff reprieve by the United States. Initially, Thai exporters were bracing for a steep 36 per cent reciprocal tariff, but negotiations brought this down to a standard 10 per cent duty temporarily. With the higher tariff expected to kick in on August 1, American importers rushed to place advance orders, resulting in an export frenzy.
According to data from The Gem and Jewelry Institute of Thailand (GIT), exports of gem and jewellery products—excluding unwrought gold—surged to US$6.64 billion, marking a 72.59 per cent increase year-over-year. This robust figure placed the industry as Thailand’s third-largest export category, highlighting its critical importance to the national economy.
Strategic Stockpiling by US Buyers
GIT Director General Sumed Prasongpongchai attributed the skyrocketing export volumes to smart, anticipatory moves by American buyers who sought to beat the deadline before stiffer tariffs were imposed.
“It is plausible that a significant portion of the recent surge in Thailand’s gem and jewellery exports reflect preemptive purchasing by US importers,” he stated. “Buyers may have sought to secure inventory at lower costs before any duties take effect.”
Evidence of this strategic behavior was clear across several key product categories. Gold jewellery exports to the US rose 7.19 per cent, silver jewellery saw an increase of 11.67 per cent, polished precious stones climbed 12.74 per cent, and polished semiprecious stones rocketed by 33.63 per cent. The most dramatic leap, however, came from synthetic gemstones, which posted an astonishing 1,040 per cent year-on-year growth.
“These figures suggest not only sustained demand but also strategic stockpiling by US importers in anticipation of higher costs post-tariff implementation,” Prasongpongchai added. He noted that many US-based companies ramped up their orders significantly in the weeks leading up to the April 9 tariff start date.
Silver Jewellery Sees Massive Spike
Silver jewellery, a mainstay of Thailand’s export portfolio, has particularly benefited from the situation. Between January and May 2025, Thailand shipped US$900 million worth of silver jewellery, with US$250 million of that going directly to the United States. According to Sidthisak Limvatanayingyong, President of the Thai Silver Exporters Association, a considerable bulk of these shipments occurred during the early months of the year, fueled by American buyers’ attempts to sidestep impending price hikes.
“The first quarter saw a mad rush of orders,” Limvatanayingyong explained. “Clients were eager to place and receive shipments before the higher tariff came into play. The momentum carried over into the second quarter, especially as the end of the grace period approached.”
But not all news is positive. While the early-year boom injected momentum into the industry, Limvatanayingyong warned of signs that the sector may soon slow. With uncertainty looming and the threat of a 36 per cent tariff still hanging over future shipments, many importers—particularly smaller businesses—are now pausing fresh orders.
“Smaller customers who operate on tighter margins are becoming cautious,” he said. “The ongoing negotiations between Thailand and the US have left everyone in limbo. Until a clearer policy emerges, both buyers and sellers are taking a wait-and-see approach.”
Price Sensitivity Takes a Toll
The imposition of a 10 per cent tariff on April 9 already led to a noticeable dip in some sectors, especially mass-market, lower-margin products that are highly sensitive to price fluctuations. Prasongpongchai noted that even small cost increases could deter bulk buyers of budget-friendly items.
“Direct exports to the US have softened since April 9,” he observed. “The impact is more pronounced among products where even a marginal cost hike influences purchasing decisions.”
Despite these headwinds, industry stakeholders remain cautiously optimistic. Ongoing discussions between Thai and US trade officials offer a glimmer of hope that the hefty 36 per cent tariff could be either postponed or scrapped altogether. If these negotiations bear fruit, it could stabilize the market and encourage a fresh wave of orders.
Geopolitics and Luxury Trade Collide
This situation underscores how deeply geopolitics can influence luxury trade. As one of the world’s premier gem and jewellery hubs, Thailand plays a critical role in global supply chains. Any shift in trade policy—especially involving a major consumer like the US—can ripple across global markets. The recent surge proves just how sensitive and responsive the sector is to policy changes.
More than just a statistical uptick, this export boom highlights Thailand’s strategic position and resilience. Amid tariff uncertainties, the Thai gem and jewellery sector proved it could still mobilize quickly, scale operations, and meet heightened demand—showcasing both flexibility and international competitiveness.
What Comes Next
With the grace period now concluded and the US poised to reinstate the full 36 per cent tariff starting August 1, the future of Thailand’s gem and jewellery exports hangs in delicate balance. While high-end buyers may absorb the extra cost, middle-tier and mass-market importers are likely to slow down unless the trade dispute sees a resolution.
If ongoing talks result in favorable trade terms, Thailand could see renewed growth later in the year. However, if the 36 per cent tariff is enforced, the industry may be forced to shift focus to other markets, such as the Middle East, Europe, and Southeast Asia, while simultaneously exploring value-addition and branding strategies to maintain margins.
Thailand’s remarkable performance in the first half of 2025 is a powerful testament to the agility and strength of its jewellery export sector. Yet, without a resolution to the tariff issue, the road ahead remains uncertain.
What this episode ultimately underscores is the need for strategic foresight and swift adaptability in an increasingly volatile global trade environment. Exporters, policy makers, and industry leaders must remain nimble and proactive, ensuring that Thailand retains its standing as a global powerhouse in gem and jewellery trade. The temporary surge brought hope and profits, but whether that momentum can be sustained depends entirely on diplomacy, planning, and timely decision-making. For the latest on the Thai jewellery industry, keep on logging to Bangkok Gems News.
