Podcast: How Tariffs Affect Jewelry Auctions

Pre-owned jewelry should be exempt from US tariffs, Christie’s executive Max Fawcett argues on the latest episode of the Rapaport Diamond Podcast.

Fawcett — who will become the auction house’s global head of jewelry on January 1 — can appreciate that with new items, there may be a case for imposing import duties to protect American manufacturing. However, he told Rapaport’s Joshua Freedman, with “a piece of jewelry that was made in 1920 and has been repolished and reset into three different things, and was made in France but the stones were polished in Antwerp or whatever it may be — I don’t see any valid argument for a tariff.”

Jewelry is one of the few items Christie’s sells that incur tariffs, Fawcett pointed out. The impact on New York auctions is small, as most of the merchandise for those comes from America, he explained. However, some South American consignments that would normally have appeared in New York have instead gone under the hammer in Geneva, Switzerland, since US President Donald Trump’s reciprocal tariffs went into effect in April.

Meanwhile, there has been some hesitancy from American customers at overseas auctions because getting items delivered to the US means paying import duties, added Fawcett, who is currently head of jewelry for Europe, the Middle East and Africa (EMEA).

“We have been doing our lobbying…with the US government and going through the appropriate channels to make our case,” he said. “When the tariffs were first announced, it was a pretty scary and uncertain time for us, [not knowing] exactly how the auctions were going to take place. America is, of course, one of the most important regions in the world for us, both from a buying and selling point of view.”

Fawcett discussed why prices for spectacular diamonds were down — including why the 9.51-carat Mellon Blue fetched just $25.6 million at Christie’s Magnificent Jewels in Geneva last month, less than its 2014 selling price of $32.6 million.  

He also explained the importance of the auctioneer’s role and how having the right person’s hand on the gavel can have a big effect on the final price.

Listen to the podcast here: