Canada has faced numerous challenges in recent years, and 2026 is no exception. Unprecedented global events have presented new challenges and opportunities, testing long-time alliances and creating new ones. The effects of political uncertainty are reflected in the price of everyday essentials, leaving consumers waiting for relief to arrive.
According to the State of Trade 2026 report, exports to the U.S. dropped 3.7 per cent last year, but this was offset by an 11.1 per cent increase in exports to non-U.S. markets. These markets now account for 32.8 per cent of total Canadian exports, the highest amount in four decades. Foreign Direct Investments into Canada also exceeded Canadian investments abroad, valued at $93.0 billion.
Expanding Canada’s Global Trade Network
Canada has been working to expand its trade agreement network, attract more foreign direct investment, and provide support to Canadian exporters. The country has 15 free trade agreements with 51 countries, representing 61 per cent of global GDP. Removing trade barriers allows Canadian businesses to benefit from lower costs, reduced red tape, and more customers worldwide.
Trade Tensions and Tariffs
Canada-U.S. trade tensions have escalated, with the U.S. imposing tariffs of 50 per cent on nearly $30 billion worth of Canadian exports. Impacted products include some jewellery and precious metals, even CUSMA-compliant products. In response, Canada has suspended negotiations and announced plans for dollar-for-dollar retaliatory tariffs targeting various sectors.
Rising Fuel Costs Squeeze Consumers
The Canadian Federation of Independent Business notes that higher fuel prices are increasing operating costs and weakening consumer demand. A June 2026 Leger poll found that 72 per cent of Canadians report a negative impact on their personal finances from higher fuel prices. Fuel costs have increased by about $53 per vehicle per month, translating to roughly $1.3 billion in additional fuel costs every month.
Canadian jewellers are competing with basic living expenses for consumer dollars. The price of gold has reached a new record, with prices approaching $4,000 per ounce in Canadian dollars. This has created significant affordability barriers, resulting in a sharp fall in gold jewellery imports. Silver has also seen an increase, gaining momentum supported by both investment demand and industrial usage.
Tech Innovations Revamp Jewellery Retail
Technological advances continue to push the boundaries, and when implemented thoughtfully, can unlock meaningful benefits for businesses and consumers. Retailers are using 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.
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.
Jewellers who can optimize their online presence and build consumer trust will see the results in-store when the consumer is ready to buy. The Buy Canadian movement continues to dictate Canadian buying habits, with consumer preference for shopping at small businesses nearly tripling compared to last year. Brand activations in the form of in-person events have helped to counter digital fatigue.
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As technology continues to become more powerful and accessible, businesses must adapt to remain relevant. AI presents new opportunities for personalization and product discovery for consumers, while allowing jewellers to optimize their workflows. Businesses that can successfully integrate the latest technology while providing a personalized approach will come out on top in these uncertain times.
For the Canadian jewellery industry, the key to success lies in creating a seamless integration between online and in-store experiences. This requires taking advantage of technology that connects consumer data, inventory, and marketing into one streamlined ecosystem. By doing so, jewellers can provide a personalized approach that meets the evolving needs of consumers.
Surge in Jewellery-Related Crime
In the midst of these challenges, the Canadian jewellery industry is also facing an increase in crime. According to Jewellers Vigilance Canada’s 2025 Annual Crime Report, the total number of jewellery crimes recorded increased by 16 per cent, with total dollar losses increasing by 62 per cent to $44,076,000. Sustained high gold values and an escalating pattern of high-value robbery events are significant contributing factors.
The report highlights observations made between 2020 and 2025, noting that robbery as a percentage of total events and total dollar losses continues to increase. Break-and-enters increased significantly in 2025, reversing a multi-year flat trend and representing a growing concern for the industry. Thefts declined sharply in 2025, though average loss per event increased, indicating fewer but higher-value incidents.
Ontario, and specifically the Greater Toronto Area, remained the dominant location for robbery events in 2025. Firearms continue to be used or displayed in a significant number of incidents, and 2025 saw multiple events where shots were fired, resulting in injury. Smash-and-grab robberies remain the most prevalent type, typically involving organized groups targeting retail locations.
Furthermore, the Canadian jewellery industry must also contend with the issue of Anti-Money Laundering (AML) compliance. FINTRAC, Canada’s AML regulator, has expanded its oversight, examination, and enforcement powers. Jewellers must understand and respond to requests from FINTRAC, as failure to do so may result in penalties. The maximum penalties for non-compliance are now 40 times previous levels, with a cap of the higher of $30 million or three per cent of global revenue.
The industry is also seeing a shift in consumer habits, with more people turning to online channels for discovery and research. According to a McKinsey study, 73 per cent of respondents said they used AI to learn more about brands and products, while 61 per cent used it to compare products and services. This presents an opportunity for jewellers to leverage AI and other digital tools to provide personalized recommendations and enhance the customer experience.
The Canadian jewellery industry is also seeing an increase in the use of AI and other digital tools to enhance the customer experience. According to KPMG, 90 per cent of respondents said they would return to a store where they had received exceptional service from knowledgeable staff. By leveraging AI and other technologies, jewellers can provide personalized recommendations, improve inventory management, and drive sales.
