Canada’s jewellery sector is dealing with a wave of uncertainty that began with a series of global shocks in 2025 and intensified through 2026. Rising tariffs, volatile fuel costs and shifting consumer priorities have forced retailers to rethink how they source, price and sell precious goods.
Trade disputes tighten margins for Canadian jewelers
The State of Trade 2026 report notes that exports to the United States fell 3.7 per cent last year.
Among the affected items were “some jewellery and precious metals, even CUSMA-compliant products,” according to a Doane Grant Thornton analysis. Prime Minister Mark Carney warned that Canada would not accept terms that jeopardise sovereignty, leading Ottawa to suspend talks and plan retaliatory tariffs on sectors such as steel and dairy.
Household budgets are feeling the squeeze. A Bank of Canada survey found Canadians postponing major purchases and focusing on essentials as they anticipate further price hikes.
Higher living expenses are eroding discretionary spending, a trend that directly impacts jewellery sales.
Technology reshapes how Canadians discover and buy jewelry
Retailers are turning to virtual consultations and AI-driven tools to improve product discovery, while financing options such as buy now, pay later are helping to increase conversion rates. These developments reinforce the importance of omnichannel strategies that combine digital convenience with the trust and experience of physical retail.
The choices made this year about service, technology, pricing, and purpose will determine who earns trust in a market where trust is becoming the most valuable currency.”
A seamless online and in-store retail experience has never been more important for jewellers. Deloitte reports that “while most shopping journeys begin online, about 80 per cent of purchases still happen in person.” A recent survey by KPMG found that “66 per cent of respondents prefer the in-store shopping experience, driven in part by a desire to physically ‘try out’ items before buying them; 26 per cent said they appreciate the speed at which they can get products in-store, and 57 per cent said they preferred in-store shopping because they were frustrated with the online experience.”
Expanding trade networks and new market opportunities
Canada now participates in fifteen free-trade agreements covering fifty-one nations, representing more than half of global gross domestic product. The broader agreement base is intended to lower costs for exporters and open additional channels for jewellery makers seeking raw material supplies.
Retail Insider reports that “consumers haven’t lost interest in shopping small: they’re just being more intentional about it. In fact, consumer preference for shopping at small businesses has nearly tripled compared to last year. People still want to support local businesses, but they need compelling reasons to do so.” Brand activations in the form of in-person events have helped to counter digital fatigue.
