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How Pandora Is Surviving Trump’s Trade War

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How Pandora Is Surviving Trump’s Trade War

Pandora, the world’s largest jewelry company, is based in Denmark and has nearly 500 stores in the United States, more than in any of its other key markets. But in some ways, its real home is Thailand, where the company has been making its products for nearly four decades.

Like many global corporations, Pandora has used a continent-crossing supply chain to sell its goods worldwide at a low cost. But last month, that supply chain became a grave weakness when President Trump said he would impose 36 percent tariffs on goods entering the United States from Thailand, alongside steep tariffs on dozens of other countries.

After Mr. Trump unveiled his “reciprocal” tariffs, Pandora’s shares were among the worst performing in Europe. A week later, Mr. Trump postponed those tariffs until early July, offering a reprieve.

But the threat looms, and Alexander Lacik, the chief executive of Pandora, is not expecting the uncertainty that is paralyzing businesses to end. Unless tariffs return to previous levels, the next year will be turbulent, he said in an interview. For now, he added, there is little to do but wait to see how investors, customers and competitors react.

“With the information at hand today, I would be crazy to make big strategic decisions,” Mr. Lacik said.

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Alongside business leaders all over the world, Mr. Lacik is grappling with how to respond to Mr. Trump’s unpredictable policies, which have generated almost maddening uncertainty. The Trump administration has started to show a willingness to lower tariffs, but his first agreements, with Britain and China, have posed more questions than answers, and tariffs are still higher than they were a couple of months ago.

Although some aspects of the trade war have been suspended, Pandora and other multinationals are in limbo, waiting for more agreements to be completed.

Pandora, best known for its silver charm bracelets, has been making jewelry in Thailand since 1989. Across three factories, thousands of people handcraft the products. The company is building a fourth plant in Vietnam, but Mr. Trump has threatened tariffs of 46 percent on Vietnamese goods.

Last year, the company sold 113 million pieces of jewelry, about three items every second, making it the largest jewelry brand by volume, with stores in more than 100 countries. A third of its sales, 9.7 billion Danish kroner, or $1.4 billion, were generated in the United States, and Mr. Lacik said he had no intention of moving away from the company’s most profitable market.

But prices will rise, he said, and who will bear the brunt of that is unclear.

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“The big question is, am I going to pass on everything to the U.S. consumer, or am I going to peanut butter it out and raise the whole Pandora pricing globally?” Mr. Lacik said.

But Pandora keeps several months’ worth of stock, giving him time to see how other jewelers change their pricing and then decide.

A few things can be done immediately, such as streamlining parts of the supply chain. The day after the reciprocal tariffs were announced, Pandora said it would change its distribution so that products sold in Canada and Latin America would no longer move through the company’s distribution hub in Baltimore, a process that would take six to nine months to complete.

Moving production into the United States is not being considered, in part because of higher labor costs. Pandora employs nearly 15,000 craftspeople in Thailand and expects to hire 7,000 more in Vietnam.

In an earnings report last week, the company estimated the cost of the trade war. If higher tariffs on Thai imports, 36 percent, and Chinese imports, 145 percent, go back into effect, they will cost Pandora 500 million Danish kroner, or $74 million, this year, and then 900 million Danish kroner, $135 million, annually after that.

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But the jeweler is not panicking. In fact, the economic curveballs are starting to feel normal, Mr. Lacik said. “We are battle ready,” he added.

When he joined the company as the chief executive in 2019, Pandora was struggling. Its share price had dropped more than 70 percent from its peak three years earlier. Mr. Lacik instituted a “complete overhaul,” he said, with new branding and store designs, an emphasis on its “affordable luxury” label, and a showcase of its complete jewelry line, not just charms.

That prepared the company for the trials that hit the global economy next. First, the Covid-19 pandemic, when 15,000 store employees were sent home and some factory workers slept on cots to keep production going. Then a surge in inflation risked customers pulling back.

Mr. Lacik’s strategy appeared to be working. In January, Pandora’s share price reached a record high. Since then, however, it has dropped more than 20 percent.

The company has managed to shield itself from some of the trade turmoil. After Mr. Trump raised tariffs on China during his first term, Pandora stopped sourcing all of its showroom furniture and display materials for its 3,000 stores from China.

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“We had some readiness,” Mr. Lacik said, so they were not “caught completely with our pants down.”

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Nearly half of Americans surveyed don’t know what America 250 commemorates

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Nearly half of Americans surveyed don’t know what America 250 commemorates

People visit the Liberty Bell on the eve of Independence Day in Philadelphia on July 3, 2025. The crack in this symbol of U.S. freedom echoes the paradox between national pride and civic ignorance revealed in a new national poll.

Juan Mabromata/AFP/Getty Images


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Juan Mabromata/AFP/Getty Images

A new national poll reveals a striking paradox in public sentiment ahead of America’s 250th anniversary: a disconnect between Americans’ strong patriotic pride and their lack of civic knowledge.

According to a survey from the libertarian Cato Institute think tank of more than 2,000 U.S. adults conducted in late June, 86% of respondents said they are grateful to be American and 70% believe the nation’s founding principles remain relevant.

However, nearly half of Americans (46%) don’t know that America’s 250th anniversary commemorates the adoption of the Declaration of Independence.

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This civic ignorance extends to basic governance: Nearly 60% do not know the main purpose of the U.S. Constitution is to limit government power, and do not know why the colonies declared independence from Great Britain.

Furthermore, the report highlights deep anxieties about the future of American liberty.

The majority of those surveyed believe the country has strayed from its founding principles, and more than half fear the U.S. could cease to be a free country within the next 50 years, citing corruption and the abuse of power as primary threats. The majority of both Republicans and Democrats share these fears.

The concerns are especially pronounced among Gen Z respondents, who exhibited both the lowest levels of civic knowledge and the least favorable views of the nation’s founders. The majority of Gen Z failed to cite the adoption of the Declaration of Independence as the source of the 250th anniversary.

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“The lack of civic knowledge is a great disaster,” said Coe Professor of History and American Studies and Professor of Political Science Emeritus at Stanford University Jack Rakove. “Any democratic system of government to succeed requires having an informed electorate.”

The Pulitzer Prize-winning authority on the drafting of the Constitution and the Declaration of Independence blamed the problem on the fragmented media landscape and schools prioritizing STEM subjects over civics and history.

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L.A. Affairs: He wanted L.A. I wanted New York. A panic attack changed everything

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L.A. Affairs: He wanted L.A. I wanted New York. A panic attack changed everything

Unpacking my third suitcase in our new West Hollywood home, a sharp pain shot through my chest. I felt dizzy and short of breath before sprawling out on our mattress, which was still covered in plastic.

“What’s wrong?” David asked.

An hour later, on a gurney in the emergency room at Cedars-Sinai, I waited to be admitted overnight. What a great start to our new life — back in L.A. after seven years in New York City — David sleeping alone at our apartment while I was to keep close to the paddles and operating room in case what had just happened was a heart attack.

I was 33, practicing yoga and exercising almost daily. A few months earlier, my New York doctor noticed I had high blood pressure, and I was feeling terrible, so something clearly was going on. Was an artery blocked? Nope, the tests revealed; physically, I was fine. What had happened was a panic attack.

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“Your health will be better in L.A.,” David had promised before returning to L.A.

Now I took no pleasure in his being wrong.

After growing up in Temple City (hardly L.A.), I went on a high school trip to the Big Apple and knew it was where I needed to be.

Exactly five years later, the time to escape California arrived after a miserable breakup from a three-year relationship with a guy that I hid entirely from my family. I was desperate and depressed, down 15 pounds from not eating much, my diet consisting largely of cigarettes and red wine. At the Archstone, my Studio City apartment, I did ecstasy alone on a Wednesday. One has to take a good look at himself when he’s in his bedroom, by himself, rolling, and so I decided it was time to start over in New York.

On the other side of the country, I thought it was normal to hook up with a new guy every third night. Which I suppose, for a gay man who’d spent the first 27 years of his life denying his sexuality to a family he feared wouldn’t understand, it was. My self-esteem was in the gutter, though you wouldn’t have known it from the outside.

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After a three-digit number of hookups on Grindr, I met David, a guy who lived on the same Manhattan corner as I did. We did what people do on Grindr and hooked up a couple of times.

But one morning, we bumped into each other on 9th Avenue. I left our short chat feeling uplifted by how smiley and polite he was in daylight and while we were sober. That night, we went on our first date, and the rest is history. But I hid what I assumed wouldn’t be well-received.

“Let’s move back to L.A.,” he said after four years of life together in New York.

“I’m really not ready,” I said. I loved living in New York and never, ever expected to leave. He understood, but he wanted to return to “the coast.” I knew that in a healthy relationship, it couldn’t be just what I wanted. So eventually, we packed up and moved to an apartment on North Flores Street in West Hollywood.

And now, I was in the hospital.

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After having to cancel the welcome home party our L.A. friends had planned for us, and being released from Cedars, my life fell apart. But being the one who kept everything together, I kept it together better than most would, at least in the presence of others.

I’m fine, I told myself, but I worried my heart was broken, and there was something medically wrong with it. To heal it, I’d need to accept truths that I didn’t want to.

Growing up was devastatingly hard for me. Being gay and misunderstood, with the unacknowledged pain of it kept inside, was quite literally eating me alive. Being back in L.A. meant being near my past. I told my mom I was gay before leaving for New York. She said she still loved and accepted me, but to this day, the struggle has never been discussed or acknowledged. I knew I was a disappointment to my family.

I went to Westwood what felt like 70 times, and after visiting a bunch of UCLA’s specialists, I found myself in the office of a neurosurgeon who took one look at me and said, “You don’t belong here. What you’re suffering from is plain old anxiety, and you’re going to have to work with your therapist on this.”

“I have been,” I said, “and it’s not helping.” But before I finished, he had walked out the door.

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Before long, the panic attacks got so bad, I could hardly drive. David chauffeured me, under the palm trees and bright sun, around as much as his schedule allowed, and when he couldn’t, I made the best of it, lugging my laptop with me for the hour-long trek to yoga-teacher training at Equinox in the South Bay, using that extra time in the back of an Uber to write.

For almost my entire adult life, I’d been in therapy, but it was couples therapy with David where I felt supported enough to admit, first to myself, that I’d been terrified of being fully myself. I was afraid he’d leave me if he saw the real me. Secretly I had been keeping a lifetime of pain bottled up inside because of fear — I didn’t want to risk losing him by being too emotional or having too many feelings.

Three months after that therapy session, the pandemic arrived, and being together 100% of the time for the next year, I let him in fully. He didn’t run — instead, he proposed.

It’s been eight years since that neurologist, and six since I’ve been able to fully drive again. And here in L.A., in a city characterized by its distance, I have, with David, built a close chosen family that supports and fully understands me.

Now, I feel “at home” at our Spanish-style Hancock Park house, the one we bought because we wanted to start a family of our own, only after L.A. allowed me to heal and live peacefully, and now, anxiety free.

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Had David not dragged me back, I wouldn’t have learned what I did about myself, my story of origin and living a life that’s so beautiful and that’s so true to me.

And certainly, we wouldn’t be bringing our baby daughter, Lucy, named after Lucille Ball (who’s more Hollywood?), home in mid-July by way of surrogacy.

The author is a writer and coach who helps established business owners build lives that feel as good as they look. He lives in Hancock Park. He’s on Instagram: @iammattgerlach.

L.A. Affairs chronicles the search for romantic love in all its glorious expressions in the L.A. area, and we want to hear your true story. We pay $400 for a published essay. Email LAAffairs@latimes.com. You can find submission guidelines here. You can find past columns here.

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To be or not to be a parent : It’s Been a Minute

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To be or not to be a parent : It’s Been a Minute

Could you see your life just as easily with children as without? 

What if you’re not cut out for parenthood? What if you grow lonely in your old age? Or what if you have a loving partner, but you disagree on this choice? Deciding between parenthood and a child-free life requires clarity about your fears and deepest desires — no easy task. This episode, psychotherapist and author of the book, The Baby Decision, Merle Bombardieri, helps us get clear. She discusses minimizing regret, normalizing feeling ‘stuck’ and why waiting to have a baby at 38 may be best. 

Want more about the decision to have kids? 

Many women don’t want kids. And for good reason.
Why are people freaking out about the birth rate?

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Additional support for this episode came from Alexis Williams. It was edited by Neena Pathak. Our Supervising Producer is Cher Vincent. Our Executive Producer is Barton Girdwood. Our VP of Programming is Yolanda Sangweni.

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