In-depth analysis of the new US tariff deals with China, Cambodia, and Malaysia. Explore the impact on diamond, gemstone, and jewelry supply chains, cost projections, and how platforms like CaratX are pivotal for navigating this new trade landscape.

A Strategic Pivot in Global Trade Policy -

In a significant move that signals a recalibration of American trade strategy, the White House has announced a multi-country tariff realignment. This policy shift, which includes both targeted reductions and selective product exemptions, is poised to reshape supply chains across several key industries, with the global jewelry and gemstone sector standing as a primary beneficiary.

For an industry built on the seamless flow of raw materials like rough diamonds, polished gemstones, and precious metal components across borders, tariff structures are a critical determinant of profitability and market access.

This latest development offers a mix of stability, relief, and new opportunities for manufacturers, exporters, and retailers. This article provides breakdown of the new deals, their immediate and long-term implications for the jewelry trade, and how businesses can leverage platforms like CaratX to adapt and thrive in this evolving environment.

Decoding the New US Tariff Agreements -

The new framework comprises distinct bilateral agreements with three major Asian trading partners, each with specific terms tailored to strategic goals.

The US-China Deal:

The most headline-grabbing component is the agreement with China. President Donald Trump announced a reduction of import duties on Chinese goods by 10 percentage points, effective November 10.

Key Change: The previous tariff rate of 20% will be lowered to 10%.

Broader Impact: As reported by Reuters, this adjustment lowers the average tariff rate on Chinese imports from a staggering 57% down to 47%. While still high, this notable reduction indicates Washington's willingness to de-escalate certain aspects of the trade war while maintaining strategic economic pressure.

Industry Significance: China is a global powerhouse for jewelry manufacturing, particularly for polished diamonds, gemstone setting, and mass-market jewelry production. This tariff cut directly reduces the cost of importing these finished and semi-finished goods into the United States.

Stability and Opportunity with Cambodia and Malaysia -

Parallel to the China deal, the US secured separate agreements with Cambodia and Malaysia, two nations with rapidly growing influence in the jewelry manufacturing space.

Base Rate Stability: Both countries will maintain their reciprocal tariffs with the US at a stable rate of 19%.

The Exemption Pathway: The most critical element for our industry is the opportunity for product-based exemptions. Through Annex III of these agreements, specific goods can qualify for a 0% duty rate once bilateral approval is granted.

Annex III's Jewelry Focus: Notably, Annex III explicitly includes diamonds, precious metals, and fine jewelry components. This indicates a clear intent to provide relief for jewelers, manufacturers, and exporters in these emerging markets, making their products more competitive in the US.

The Ripple Effect: Reshaping Global Jewelry Supply Chains

These trade moves are not happening in a vacuum. They interact with existing global hubs and emerging trends to create a new dynamic.

China and Thailand:

China and Thailand remain dominant forces in global jewelry production. China is a leader in diamond cutting and high-volume jewelry manufacturing, while Thailand is renowned for its expertise in gemstone polishing (particularly colored stones) and intricate gold and silver craftsmanship.

Thailand's Momentum: According to trade data, Thailand’s jewelry exports rose by nearly 12% year-on-year in 2024, totaling $7.3 billion. With more stable and favorable tariff conditions, analysts from the International Gemological Institute predict this figure could climb even higher through 2026.

China's Recovery: China’s polished diamond exports, which had suffered an 18% decline during the peak of tariff tensions in 2023, are now projected to recover by 10–12% in 2025, according to trade intelligence from the Gem & Jewelry Export Promotion Council (GJEPC).

Cambodia and Malaysia:

Cambodia and Malaysia have been cultivating their niches as agile, cost-effective manufacturing centers. Cambodia is gaining recognition for its skilled silversmithing and artisanal silver jewelry, while Malaysia is excelling in gold-plated and fashion-forward designs that cater directly to Western retail trends. The new tariff exemptions could accelerate this growth, drawing more investment and orders to these regions.

Quantifying the Impact:

The direct financial implications for US importers and, ultimately, consumers, are substantial.

Direct Cost Reduction: If these agreements hold steady through 2026, experts project a 10–15% reduction in average import costs for jewelry, certain consumer goods, and technology components.

Increased Competitiveness: Lower import costs allow US retailers and brands to be more competitive on price, potentially expanding their margins or passing savings to consumers to stimulate demand.

Supply Chain Diversification: The Annex III exemptions for Cambodia and Malaysia provide a compelling incentive for US businesses to diversify their sourcing away from an over-reliance on any single country, building more resilient and flexible supply chains. This is a key tenet of modern global trade strategy, as discussed in research from the World Trade Organization.

Navigating the New Landscape with CaratX:

In a period of rapid change and new opportunity, having a reliable and efficient platform to connect with global partners is more critical than ever. CaratX is designed to be that gateway, empowering businesses to capitalize on these shifting tariff dynamics.

Whether you are a seller looking to access new international markets or a buyer seeking competitively priced materials, CaratX streamlines the entire process.

For Sellers in China, Cambodia, Malaysia, and Beyond: This is your moment to expand your reach. The CaratX marketplace connects you directly with a vast network of B2B and B2C buyers in over 18 international countries. By listing your products on our platform, you can tap into the increased demand for tariff-advantaged goods from the US and other markets.

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Learn about our competitive seller plans. → Launch Your Products on CaratX

For US and International Buyers: Source your materials and finished jewelry with greater efficiency and cost-effectiveness. Our marketplace offers a wide array of goods that are now more affordable to import.

Source high-quality natural diamonds. → Shop Natural Diamonds on CaratX

Find a vast selection of precious and semi-precious gemstones. → Shop Gemstones on CaratX

Explore finished jewelry from global manufacturers. → Browse the CaratX Marketplace

Frequently Asked Questions (FAQs)

Q1: When do the new US tariff rates officially take effect? The reduced 10% tariff rate for Chinese goods begins on November 10. The product-specific exemption process for Cambodia and Malaysia is ongoing, with the final list of duty-free goods expected to be published after bilateral approvals are finalized.

Q2: How can I find out if my specific product from Cambodia or Malaysia qualifies for the 0% duty? The final, authoritative list will be published in Annex III of the respective bilateral agreements. Businesses should monitor official publications from the United States Trade Representative (USTR) website and consult with their trade compliance specialists. The early reports indicate that diamonds, precious metals, and jewelry components will be included.

Q3: Will these tariff changes make jewelry significantly cheaper for US consumers? While a 10-15% reduction in import costs is significant, the final consumer price is influenced by many factors, including branding, retail markup, and marketing. However, this reduction should increase retailer margins and could lead to more competitive pricing and promotions, especially in the B2B and value-focused segments of the market.

Q4: How does CaratX help with international shipping and customs? The CaratX platform provides a streamlined framework for international B2B and B2C transactions. While sellers are typically responsible for arranging shipping and providing necessary documentation (like certificates of origin), our system facilitates transparent communication and transaction security, making cross-border trade more accessible. For detailed logistics information, visit our Seller Information Pages.

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