While Rhode Island's small business community broadly struggles with the cost implications of the Trump administration's tariff regime, a notable exception has emerged in the state's historic jewelry manufacturing sector, where several firms report a meaningful uptick in domestic orders as Chinese competitors face significantly higher costs to export to the American market.
Rhode Island was once the jewelry capital of the world, with Providence and surrounding communities home to hundreds of manufacturers producing everything from fine jewelry to costume accessories. The industry contracted sharply in the 1990s and 2000s as Chinese manufacturers undercut domestic producers on price, but a core of approximately 150 firms has survived by focusing on quality, customization, and rapid turnaround.
"For the first time in years, I'm getting calls from customers who used to buy from China," said Anthony Iannuccillo, owner of Cranston-based Iannuccillo Fine Jewelry Manufacturing. "The tariffs have made Chinese suppliers 25 to 30 percent more expensive overnight. That's a real competitive advantage for us."
The Rhode Island Jewelry Manufacturers Association estimates that domestic orders for its members have increased by an average of 18 percent since the tariffs took effect, with the strongest gains in the mid-market segment where Chinese competition had been most intense. Several members report hiring additional workers for the first time in years.
"This is exactly what the tariffs were designed to do," said RIJMA executive director Maria Ferrante. "Protect American manufacturers from unfair foreign competition. It's working in our industry."
The positive development comes with caveats: many jewelry manufacturers also import raw materials including precious metals, gemstones, and findings that are subject to tariffs, partially offsetting the competitive benefit. And industry observers caution that the gains could be temporary if Chinese manufacturers find ways to route exports through third countries to avoid the tariffs.