According to Tenoris, US jewelry sales rose 9.6% in September, reflecting how tariffs impact the US jewelry business in another month of improved sales. Jewelry sales are driven by consumer willingness to spend more per item, with average jewelry prices up 11% year over year.

Except for flat sales in February, overall jewelry sales increased every month since October 2024. Year to date, sales have increased 5%.

Tariffs and Average Jewelry Costs

US President Donald Trump released an Executive Order, stating he “may be willing to offer a zero percent reciprocal tariff” to Aligned Partners.

The list of products mentioned in the Executive Order’s Annex includes rough and polished diamonds, but not jewelry. As for diamond centers, Aligned Partners currently includes the EU but not India, the UAE, or Israel.

The tariffs’ impact is clearly felt. The average jewelry cost rose 16% in September, after leaping 34% in August.

Tariffs’ impact on finished jewelry is on items that retail under $1,500. Retailer unit purchases in this range fell 20% year over year. The one item retailers purchased most during the month was fashion bracelets.

However, purchases of finished jewelry priced at $1,500 and more increased 10%. Here, purchases increased across the board except for wedding bands.

There was clear evidance that Trunp’s tariffs impacted diamond purchases by US specialty retailers. Diamond costs per carat rose 14% from August, as US loose inventory slowly depleted and 50% tariffs were placed on India, the main source of polished diamonds.

US tariffs impact was most pronounced in the quantity of purchases made by retailers. The number of diamonds purchased was down 19% year-on-year and 26% from August.

In September, finished jewelry sales revenue increased 14%, double the growth rate seen so far this year. The main driver was a rise in average consumer expenditure on jewelry, soaring 16.5% year on year.

This rise in average expenditure is an ongoing trend, where consumers that shop for items priced at $1,500 and more increase their buying, while lower price points see a decline in demand.

In the case of +$1,500 jewelry, unit sales jumped 16% and revenue grew 21%. The most popular item was wedding bands, and necklaces posted the highest year-on-year increase in demand. This is another area where tariffs impact demand. Those that spend less are less inclined to spend on jewelry.

Diamond jewelry benefited from this trend. Sales rose nearly 16% year on year, and unit sales increased 8.6%. Here too, the average price increased, up 6.5% to $4,606.

Alongside the good news, the level of inventories was overall flat. However, inventories of diamond jewelry declined, a sign that retailers expect lukewarm or late holiday purchases.

While demand for finished diamond jewelry increased, sales of loose diamonds by US specialty retailers had another difficult month.

Natural diamond sales declined over 10% year on year, with unit sales declining by more than 10%. The average retail price was slightly positive, rising 1% year on year.

The disparity between the increased demand for finished diamond jewelry and the decrease in loose diamond sales is worrying. It underscores the heart of the problem the diamond industry is facing: decreased demand for diamond engagement rings set with natural diamonds and a generational shift.

Currently, diamond engagement rings have a market of just 42% of units sold. Even though they account for the majority of revenue, 69%, the unit share is mainly shrinking.

This also highlights the generational shift. Those that buy engagement rings are mainly in the 25-35 age group. Those that buy a $15,000 item are usually older. Without a major diamond industry effort to turn the tide, these trends may only continue.

Considering the decline in demand and how tariffs impacted retailers’ willingness to purchase goods, the sharp decline in retailers’ diamond inventories is only to be expected.

The US jewelry market is an unusually fragmented one, posing challenges to identifying changes in consumer demand, retailer inventory, and pricing trends.

Tenoris is a trend analytics company that specializes in the US jewelry retail market. Tracking more than $20 billion in sales, we are the premier data source for US jewelry sales data. If you want to get the insights that will help you improve your competitiveness in an era when US traiffs impact sales and demand, contact us to request a demo today.