A 39 per cent tariff on Swiss imports will come into force on August 7, 2025, sending shockwaves through the luxury watch market as brands including Rolex brace for price hikes and shifting consumer behaviour.
Announced by Donald Trump in a sweeping executive order, the tariff targets all Swiss imports and is part of a broader overhaul of U.S. trade policy. With Switzerland lacking a formal trade agreement with the U.S. by the August deadline, it now faces one of the highest global tariff rates under Trump’s framework.
Swiss watch exports to be largely affected by Trump’s tariff
Switzerland exported over $6 billion in timepieces to the U.S. last year, making America its top market since 2020. But the new 39 per cent levy is forcing major brands – including Rolex, Omega, Patek Philippe, and Vacheron Constantin – to choose between absorbing the costs or raising prices.
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According to FOX Live Now, ‘some prices [are] reportedly rising as much as 15 per cent in anticipation,’ especially for gold models and high-end timepieces. Independent brands without deep financial buffers are particularly vulnerable.
The Wall Street Journal reports that Swatch Group, which posted “double-digit” growth in U.S. sales earlier this year, warned investors that tariffs, currency shifts, and gold prices could squeeze margins further.
Second-hand watch market may benefit
While luxury retailers brace for impact, collectors are already looking to the pre-owned market for relief.
According to FOX, the second-hand industry now accounts for nearly one-third of global watch sales, with platforms like Chrono24 and WatchCharts seeing a surge in demand. Prices for used watches have fallen for 13 consecutive quarters, making them increasingly attractive to price-conscious buyers.
An analysis by Morgan Stanley and WatchCharts found that second-hand demand is growing faster than the new market – especially for investment-grade watches like Rolex and Patek Philippe, which tend to retain value.
Will watch collectors pay more for prestige or pivot to the second-hand scene?
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