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Buyer Beware... If you're non-American, think twice before purchasing from the US

togal said:
I instructed the vendors to put 'gift' (ummmm...gift to myself)...on the customs documentation,
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Of course I hope everything goes smoothly. But as a general rule…. This is a horrible idea.
If the documentation is purposefully misleading the recipient could easily lose the shipment. Or worse.
As a rule- it is smart to dot every i and cross every t on international shipments
 
Rockdiamond said:
Of course I hope everything goes smoothly. But as a general rule…. This is a horrible idea.
If the documentation is purposefully misleading the recipient could easily lose the shipment. Or worse.
As a rule- it is smart to dot every i and cross every t on international shipments
Click to expand...

I agree... I have one coming from NYC and it's cleared customs... Am just waiting for delivery... The value was low-balled, under some threshold, whereby by I paid a nominal fee... The other is coming from L.A.... We'll see how that one plays out... My point is, it breeds people trying to circumvent the system who are otherwise honest people... This is one small example...
 
I also have another point I want to make about trade deficits. By definition, a trade deficit (in the US’s case it’s more of a goods deficit, since the US is a net exporter of services and therefore holds a services surplus, actually) is generally offset by inflows of foreign capital. This is by definition because a country’s balance of payments must net zero (current account plus capital account. A current account deficit pairs with a capital account surplus).

Disclaimer: I’m not a policymaker or economist, but I do have a passing familiarity with macroeconomic principles.

In the case of the US, why you hold a large trade deficit is because you also have a lot of foreign inflows of capital. Many economists hold the view that a large part of this foreign inflow of capital came first, so more foreigners want to put money in US assets than Americans do in foreign ones. This drives demand for dollars, which means that your currency strengthens relative to others, which means purchasing foreign goods becomes cheaper, and ergo you have a trade deficit. Some part may be driven in reverse - because you import more than you export you need to borrow from foreign economies to make your payments. But largely, the former drives the state of the US BoP and not the latter.

This is neither inherently good or bad. It depends on what that money is used for. If that foreign money is put towards opportunities that drive growth (investing in companies etc) that generate return within the US, then it is beneficial and the trade deficit - whatever its size - is sustainable because it is being funded by foreign inflows of capital driving economic expansion within the US.

So, again, trade deficits are not inherently bad. The US used to be a huge investment destination for foreign capital. It is natural to have a trade deficit while also having net inflows. If you had a trade surplus, you would have to have net outflow of capital to foreign economies. That is literally a macroeconomic principle. That is by definition.

Now, with tariffs - you will see the trade deficit shrink, most likely. But you will also see a reduction in investment in your country from foreign investors. Prices will go up. This is how an economy could head into stagflation. It is deeply concerning.
 
Circling back to the diamond business...I just got a call from a lab grower.
We have a stone on memo ( consignment)
I was offered the opportunity to buy the diamond now, or the price goes up Monday ...how much? They would not say but 25% seems likely.
How is this helping?
Please- can we stop "winning"??????
 
More calls.....a large Indian natural diamond guy says 10-15% increases starting on Monday.
On paper, my company just made a small fortune.......but I'm not going to raise prices on any existing inventory.
 
Rockdiamond said:
More calls.....a large Indian natural diamond guy says 10-15% increases starting on Monday.
On paper, my company just made a small fortune.......but I'm not going to raise prices on any existing inventory.
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In the short term at least, those of us who stock inventory will have a competitive advantage. Merchants who rely heavily on virtual inventory, expecially if it is housed overseas, will have greater challenges.
 
Rockdiamond said:
More calls.....a large Indian natural diamond guy says 10-15% increases starting on Monday.
On paper, my company just made a small fortune.......but I'm not going to raise prices on any existing inventory.
Click to expand...

I find this to be the logical extension of tariffs, but IMO, India REALLY upped their prices on other things about two years ago, maybe when they discovered Americans would pay more. Certain Indian setting companies charge as much as legitimate antiques on eBay now. For things like authentic looking antique style lab diamond jewelry, buying preowned vintage w real diamond is about the same price now. If it’s natural, they are charging nearly same price!

I also notice there are too many “old cut style” diamonds and gems, cut in India, being marketed as real antiques. I think Indian is making big money (Western style money in a country with low labor costs) because of USA naïveté, demand and willingness to pay.

Is this lock on the market because India has low cost/high skill labor eg jewelry makers and diamond cutters and we don’t? I think yes. Same issue with Canada having diamond rough but no finishing facilities. Would it make sense to grow markets here? Just questions.
 
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LightBright said:
Would it make sense to grow markets here?
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The US has been the largest jewelry market forever.....maybe China is overtaking us.
However a recession will not bring market growth.
We did not notice any sort of increase in Indian Diamonds or jewelry over the past few years- just the opposite.
Lab prices dropped substantially over that time and naturals followed suit.....
 
The BBC news website (bbc.co.uk/news) has a live commentary section, for anyone interested. The trillons of dollars mentioned and talk of global recession are maybe not reading for a Friday night. (The BBC is biased on certain domestic topics but I don't think there is much bias involved when writing about stock market fluctuations and responses).

Edit for spelling
 
Another email from a moment ago

Hello,

As our premium (XXX Brand )customer, we are informing you of an important update in regards to recent tariff changes that may impact your business.

As of April 5, 2025, a universal tariff on imports into the U.S. has taken effect, with additional customized tariffs beginning on April 9, 2025. Both tariffs total to 27% on diamonds and 32-34% on jewelry.

These changes will reflect our pricing on cut & polished diamonds, gemstones, jewelry, and other related products.

Due to a substantial increase in tariffs on loose natural and lab-grown diamonds and jewelry, immediate action is required on all outstanding memos.
 
Rockdiamond said:
The US has been the largest jewelry market forever.....maybe China is overtaking us.
However a recession will not bring market growth.
We did not notice any sort of increase in Indian Diamonds or jewelry over the past few years- just the opposite.
Lab prices dropped substantially over that time and naturals followed suit.....
Click to expand...

On diamonds and labs.

I’m talking about finished jewelry. Indian jewelry is matching its prices to preowned vintage now. India and Turkey are owning the Antique replica market now (more than US and China). Turkey charges 100% of what it costs to buy antique (they are selling replicas that they call antique for same price as antique). It used to be China and Argentina. But maybe that’s a niche.
 
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LightBright said:
I’m talking about finished jewelry
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Ah- it really depends on the specific type of jewelry.
Things like Tennis bracelet, riviera necklaces, diamond crosses, stud earrings....are virtual commodities. Hard to raise prices due to competition..
Stylish pieces- antique repros are in a different class. Definitely higher margin items, face less competition.... if the seller can increase prices, they will.
 
Rockdiamond said:
Ah- it really depends on the specific type of jewelry.
Things like Tennis bracelet, riviera necklaces, diamond crosses, stud earrings....are virtual commodities. Hard to raise prices due to competition..
Stylish pieces- antique repros are in a different class. Definitely higher margin items, face less competition.... if the seller can increase prices, they will.
Click to expand...

Thanks for clarifying, I understand now.
 
Nuckin' futz
 
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