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| Swiss government officials were hit with a 39% tariff from the US. Carl Court/Getty Images |
A sweeping new tariff from the Trump administration is sending shockwaves through the global luxury watch industry and American collectors may soon feel it in their wallets.
The White House officially announced an increase in tariffs on imports from Switzerland, raising the proposed rate from 31% to a staggering 39%. The change, set to go into effect on August 7, comes as part of a broader strategy to penalize foreign trade partners and boost domestic manufacturing. But for the world of fine horology, it’s nothing short of a “seismic event,” according to industry insiders.
The luxury watch community is reeling. Switzerland is the undisputed global hub for high-end watchmaking, home to legendary brands such as Rolex, Patek Philippe, Omega, Audemars Piguet, and Cartier. While the Swiss government may still attempt to negotiate or contest the tariff, time is running out before the U.S. market faces a sudden surge in pricing for Swiss-made goods.
Why the New Tariff Matters
The U.S. has imposed a 10% baseline tariff on Swiss goods since April, but the new 39% rate will dramatically amplify cost pressures on both brands and consumers.
“This isn’t just a tax,” said Eugene Tutunikov, CEO of Swiss Watch Expo, in an interview with Business Insider. “It’s a seismic event that will cause a stark divergence between the new and pre-owned markets.”
Brands have already started adjusting prices in anticipation. According to a recent Morgan Stanley report, luxury watchmakers especially Rolex have been subtly increasing their U.S. retail prices throughout the year, likely in preparation for the tariff hike. Analysts expect that trend to continue as brands scramble to protect margins.
For American consumers, this could mean fewer Swiss watches available on the market, and significantly higher price tags on what does arrive.
The Pre-Owned Market Could See a Boom and Then a Price Hike
With new Swiss-made watches becoming prohibitively expensive, buyers are expected to pivot to the pre-owned market. That includes not just secondhand Rolexes, but also previously owned models from Audemars Piguet, Hublot, Breitling, and other luxury names.
“There’s no import duty on watches already in the U.S., which gives secondhand dealers a huge advantage right now,” explained Joshua Ganjei, CEO of European Watch Company. “For many American collectors, the 39% tariff instantly turned new releases from Swiss brands into a luxury few can justify.”
Morgan Stanley also noted a rise in demand for pre-owned timepieces in recent months, which aligns with inflation pressures and ongoing price increases on new models. Although the secondary market has seen declining prices since mid-2022, that trend is expected to reverse.
Tutunikov predicts that prices for pre-owned watches could increase 10% within the next month, and as much as 35% within six months. The surge would be driven by sudden demand for inventory already within the U.S. supply that won’t be subject to the new tariff.
“In the short term, secondhand Rolexes and other Swiss brands will become hot commodities,” he added. “But that demand will push prices up quickly, especially for sought-after models like the Rolex Submariner, Daytona, or Patek Nautilus.”
Collectors and Retailers Face a Tough Choice
For both serious collectors and casual buyers, the tariff creates a new kind of market tension. While retailers with existing U.S. stock may enjoy a brief sales bump, brands importing new product lines will either have to eat the cost or pass it along to consumers. With prices already high and the watch industry facing broader questions about post-pandemic demand many are bracing for a rough adjustment.
“This changes the game entirely,” said Tutunikov. “Retailers will hesitate to restock unless they know the product will sell, and buyers may panic-buy before the full price increases hit.”
As new imports slow down or become less economically viable, scarcity will likely drive up values for desirable pieces already circulating within the country. That’s a boon for pre-owned dealers but not necessarily good news for buyers.
Is There Room for Negotiation?
Switzerland may yet challenge the tariffs, but the timeline is tight. The August 7 implementation date gives little room for last-minute diplomacy, and many experts believe the current administration may use the move to set a tougher tone on global trade.
“It’s unclear what comes next,” said one European trade analyst. “The luxury watch market is small in the broader trade picture, but symbolically it’s massive. These are heritage brands and high-margin goods. It’s a politically visible battleground.”
What This Means for the Average Watch Enthusiast
If you're thinking of buying a new Swiss watch this year particularly from top-tier brands you might want to act fast. Prices are expected to rise across the board as soon as the tariff takes effect, and that includes both authorized dealers and gray market sellers who depend on overseas shipments.
On the flip side, if you're holding rare models, especially those in excellent condition, you may find yourself in a seller’s market by year-end. With demand shifting rapidly to secondhand platforms, private owners and collectors could capitalize on heightened interest.
Either way, the message from industry insiders is clear: the U.S. watch landscape is about to shift dramatically.
