Pandora, a Danish jewelry company, is considering raising prices in the US because of the steep tariffs imposed by President Donald Trump, as stated by CEO Alexander Lacik.
“All businesses in the accessible jewelry sector source materials from various Asian countries with differing tariff rates,” Lacik stated on Friday. He also mentioned that while the exact price hikes remain uncertain, American consumers will ultimately bear the cost.
Goldman Sachs economists recently stated that the CEO, along with other executives, is warning of raised prices to offset tariff effects, with American companies being most affected and consumers likely to bear the increasing burden.
Pandora is produced in Thailand.
Pandora, a company that produces charm bracelets, is facing challenges because of decreased consumer spending caused by economic instability, worsened by US trade policies. The Danish brand produces the majority of its jewelry in Thailand, which is impacted by US tariffs of 19%.
Pandora’s reliance on the US market for revenue is less than that of its competitors, accounting for about one-third of its total revenue.
The company is experiencing lower demand than anticipated in its primary European markets, as revealed in its second-quarter results released on Friday. This caused a 14% drop in shares, further extending this year’s decline to over 30%.
“Approximately one-third of my business is in the United States, with the remaining two-thirds operating overseas. Therefore, in the event of a 10% price hike, I could potentially absorb 3.5% of the increase domestically and globally, unlike others who may have to pass on the full 10% rise in the US,” Lacik explained.
