Tariffs are an “unwelcome aspect” of business for Danish jewelry-maker Pandora, but CEO Alexander Lacik concedes the new challenges won’t mean the company will move production to the U.S.
Despite its exposure, Pandora will be able to manage tariffs at the 10% level, Lasik said, and has already taken steps to mitigate the impact of the taxes. The company sources much of its point-of-sales material—such as store furniture and boxes—from China and it is finding new countries from which to source those supplies, Pandora told Fortune. While the company provides its stores in Canada and Latin America with jewelry shipped to its Baltimore distribution center, it is now working to rejig its deliveries directly to those countries without having to pass through the U.S.
“The more worrying thing in all this, is that it’s not predictable,” Lacik told CNBC. “I think this plagues most people like myself that sit on the business side of things.”
Pandora isn’t the only jewelry company contending with tariffs. Most other competitors source labor from parts of Asia, meaning everyone in the industry is experiencing the same challenges. While the taxes essentially level the playing field, it’s bad news for consumers, who will feel the impact of tariffs on the rising cost of jewelry.
“You could have an argument, if these tariffs remain, then it’s going to be more expensive for everybody that plays somehow,” Lacik said. “And therefore we should expect that the consumer pricing will see some change to it.”
