Thailand witnessed a rush of gem and jewellery orders from the US earlier this year, ahead of the imposition of heftier tariffs. 

The country was initially facing reciprocal tariffs of 36 per cent on exports to the US, before this was reduced to the standard 10 per cent during the three-month pause from April 9 to July 31. At press time, negotiations were ongoing to lower the 36 per cent import duty on goods from Thailand, ahead of its August 1 implementation. 

Thailand’s gem and jewellery exports reached US$12.1 billion from January to May 2025, a 91.6 per cent increase over the US$6.3 billion recorded during the same period in 2024, according to data furnished by The Gem and Jewelry Institute of Thailand (Public Organization) or GIT. This made the sector Thailand’s third-largest export category. Excluding unwrought gold, gem and jewellery exports stood at US$6.64 billion, representing a year-on-year increase of 72.59 per cent.

GIT Director General Sumed Prasongpongchai said, “It is plausible that a significant portion of the recent surge in Thailand’s gem and jewelry exports reflect preemptive purchasing by US importers ahead of the expected 36 per cent tariff enforcement. Buyers may have sought to secure inventory at lower costs before any duties take effect.”

US-bound exports showed strong growth across several key product categories: increasing 7.19 per cent for gold jewellery, 11.67 per cent for silver jewellery, 12.74 per cent for polished precious stones, 33.63 per cent for polished semiprecious stones and 1,040 per cent for synthetic gemstones. 

“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 revealed that a significant number of US buyers increased orders in the weeks leading up to the tariff implementation. The surge in pre-tariff purchasing was a strategic move aimed at minimising exposure to the higher import costs.

Direct exports to the US softened following the imposition of the 10 per cent tariff on April 9, especially for lower-margin product lines that are more price-sensitive. This decline was particularly evident in mass-market goods, where even minor cost increases affect buyer decisions, Prasongpongchai continued.

Thailand’s silver jewellery exports from January to May 2025 reached some US$900 million in value, with around US$250 million heading to the US, according to Thai Silver Exporters Association President Sidthisak Limvatanayingyong. 

He attributed this substantial increase in deliveries to the US, particularly in the first quarter, to buyers rushing to place and receive orders before the additional tariff hike took effect. The positive trend continued into the second quarter, as some customers continued to stock up ahead of the grace period's expiration. 

“Despite these short-term increases, many businesses have started holding off on new orders, especially smaller customers who may struggle to operate amid ongoing uncertainty. Both buyers and sellers are now waiting for a clearer policy direction and the outcome of ongoing trade negotiations,” Limvatanayingyong disclosed.