Global jewellery giant Pandora adjusts supply chain due to unpredictable tariff policies established by Trump administration
Pandora Shuffles Supply Chain Amid Tariff Uncertainty
In response to Donald Trump's tariff chaos, global jeweler Pandora is shaking up its supply chain. Alexander Lacik, the company's CEO, announced they will be sending products from their Thailand factory to Canada and Latin America instead of relying on a U.S. warehouse.
Shares on the Copenhagen stock market have taken a hit, plummeting 6% since Trump unleashed the tariffs. Thailand, where Pandora manufactures most of its goods, such as the iconic £35 signature charms for bracelets, initially faced a 37% charge—since postponed until July.
"Nobody knows what will happen 75 days from now," Lacik told the Financial Times. He dismissed Trump's hopes that more manufacturers would create 'made in the US' goods, arguing that the brand relies on areas with 'enough of a craft tradition'.
Though Thailand may only continue to face its current 10% fee, prices are still expected to climb, Pandora warned. Sales in the first three months of the year soared 8% to £830 million, reflecting continued American spending on jewelry.
Pandora shares rose 1.7%.
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Pandora is experiencing a supply chain transformation in a bid to dodge Donald Trump's tariffs, with costs, sourcing locations, and pricing tactics all on the line. The tariffs' implications for Pandora are substantial, with potential direct financial impacts reaching £38.1 million per year at a 37% rate.
Amid these onerous tariffs, Pandora is rethinking its supply chain strategy. Moves include transitioning point-of-sale materials for the US market, rerouting shipments to avoid tariffs via the U.S. distribution center, and possibly considering new supplier countries.
Pandora has projected pricing increases to offset the added costs, potentially expanding these hikes as tariffs continue to evolve. Alas, with tariffs remaining a volatile political issue, Pandora must remain nimble, prepared to adjust and adapt at a moment's notice.
- Pandora's financial situation is influenced by the political tariffs, with potential direct financial impacts of up to £38.1 million per year at a 37% rate, according to their projections.
- In response to these tariffs, Pandora is making significant changes to its supply chain strategy, possibly transitioning point-of-sale materials for the US market, rerouting shipments to avoid tariffs via the US distribution center, and considering new supplier countries.
- The editorial added that Pandora is also planning pricing increases to offset the added costs, with potential expansions as tariffs continue to evolve.
- This entire situation underscores the importance of considering the impact of tariffs on the business sector, specifically the finance and manufacturing industry.
- For investors looking to navigate the complex landscape of stocks and the jewelry industry, DIY investing platforms such as AJ Bell, Hargreaves Lansdown, Interactive Investor, InvestEngine, and Trading 212 can provide valuable insights and investment opportunities.
