Pandora's Box of Trouble: Tariffs Could Make Your Bling Cost a Wing and a Prayer!

Like Peas and Carrots... Tariffs and Trouble

Mama always said 'Life is like a box of chocolates you never know what you're gonna get.' Well this time it seems like we're getting a box full of tariffs! This fella named Alexander Lacik who's the big cheese at Pandora (that's the jewelry place where you can get them shiny bracelets and things) he's worried about President Trump's tariff ideas. Seems like if them tariffs go up the price of jewelry might go up too. And that's not good Lieutenant Dan!

Run Forrest Run! Away from High Prices

Mr. Lacik was jawin' with some folks at CNBC and he said that the current tariffs which are like 10% ain't too bad. But if they go back to what they were before those “reciprocal” rates then it's gonna be a whole different ball game. Most of them jewelry makers like Pandora they get their stuff from Asia. So if them tariffs stay it's gonna cost more for everyone and that means we gotta pay more too! Just like when Bubba Blue Shrimp Company had to pay for all those shrimp boats!

Thailand Is My Best Good Friend

Now Pandora they make a lot of their stuff in places like Thailand Vietnam India and China. And those places got hit with tariffs ranging from 26% to 46%. That's a whole lotta shrimp! Pandora even said it could lose a bunch of money like 1.2 billion Danish kroner. I don't know how much that is but it sounds like a lot of chocolate. Thankfully President Trump put a pause on those tariffs for 90 days but nobody knows what's gonna happen when that time is up.

Stupid Is As Stupid Does... Pay More?

So how much more are we gonna have to pay? Mr. Lacik said they've been lookin' at different possibilities. Is it gonna be 34% or 40%? They don't know yet. They gotta see what everyone else is doin'. But if the tariffs stay at 10% it's probably gonna be alright. But if they go up to say 30% “then the world changes.” Just like when I started playin' ping pong the world changed for me!

Life is a Box of (Expensive) Chocolates

Right now a silver Pandora bracelet costs about $75 and them diamond rings are around $200. Pandora is still hopin' to grow by 7% to 8% this year but they lowered their profit expectations a bit because the dollar ain't doin' so good. And all of this doesn't even include what might happen with the tariffs after that 90 day pause. It's like tryin' to catch a bullet with your teeth Jenny.

No Manufacturing in the U.S. of A.!

Now President Trump wants companies to make stuff in the U.S.A. but Mr. Lacik said that ain't gonna happen for Pandora. He said it would cost too much to pay folks here and they don't have the right skills. He employs 15,000 craftspeople in Thailand! He can't find that many talented folks in the U.S. Plus he's worried about all the uncertainty. It's like tryin' to predict what Jenny's gonna do next. You just never know!