Tariff Effects on the Watch Market: How U.S. Policy Is Reshaping the World of Timepieces

Tariff Effects on the Watch Market: How U.S. Policy Is Reshaping the World of Timepieces

By Ray Claudio

1. Introduction: When Politics Meets Precision

In August 2025, the U.S. announced a sweeping 39 percent tariff on Swiss imports, targeting luxury goods including watches from one of America’s biggest trading partners.
For collectors and dealers, this wasn’t just another headline; it was a market-moving event. The watch industry, valued at over $60 billion globally, suddenly found itself recalibrating to a new reality.

In the months that followed, wholesale shipments surged, resale prices climbed, and both enthusiasts and investors began asking the same question: what happens next?

“These tariffs aren’t abstract economics; they're directly visible in the price tag of a Rolex Datejust or Omega Speedmaster,” notes Chrono24’s June 2025 market analysis (Chrono24 Magazine, 2025).

 

 

2. The Tariff Breakdown: What’s Being Taxed and Why

The 39 percent duty applies to Swiss-origin goods entering the U.S., covering everything from high-end wristwatches to precision chronometers.
Swiss exports to the U.S. represent roughly 17 percent of Switzerland’s total watch output, according to the Federation of the Swiss Watch Industry (FH), making the United States the second-largest destination after China (Swissinfo, 2025).

Why the tariff?
The U.S. Trade Representative’s office cited “imbalances in bilateral trade” and “non-reciprocal market access” as justification.
But for watchmakers in Geneva and Le Locle, the move landed like a thunderclap—one that rippled through brand pricing models, dealer inventories, and even grey-market listings.

 

 

U.S.–Swiss Watch Trade Volume (2019-2025)

 

3. How Tariffs Are Affecting the New Watch Market

3.1 Price Inflation Across Brands

Immediately after the tariff announcement, U.S. retailers began factoring in the cost increase. Analysts estimated an average MSRP hike of 10 to 25 percent across major Swiss brands (GQ Magazine, Aug 2025).

  • Rolex reportedly raised prices on certain Datejust and Day-Date references by 12–15 percent.

  • Omega and TAG Heuer announced similar adjustments.

  • Audemars Piguet and Patek Philippe indicated they might absorb part of the increase to maintain market share among U.S. collectors (Reuters, Aug 2025).

“It’s a balancing act,” explains an independent New York retailer quoted by Fratello Watches (2025). “Either raise prices and risk losing volume, or absorb the cost and shrink your margin.”

 

 

3.2 Stockpiling and Supply Distortions

In the weeks before the tariff took effect, U.S. importers rushed to clear customs early, triggering a temporary boom in shipments. Swissinfo (2025) reported that exports to the U.S. rose 21 percent year-over-year in June 2025, an unusual surge for that month.

Now, that inventory is dwindling. Smaller boutiques and authorized dealers are struggling to replace stock without incurring tariff costs, creating longer wait lists and less discounting.

 

 

Tariff Timeline & Price Impact by Brand

 

 

3.3 Retail Behavior and Consumer Reaction

Consumers aren’t ignorant of these macro forces. Dealers in Los Angeles and Miami report an increase in early purchases as buyers “lock in prices” before further adjustments (Fratello Watches, 2025). At the same time, interest in Japanese and German brands Seiko, Grand Seiko, Nomos, Glashütte has spiked as price-conscious enthusiasts seek alternatives.

 

 

4. The Unexpected Winner: The Pre-Owned Market

While new imports face cost inflation, pre-owned watches already in the U.S. remain untouched by the tariff. That creates a unique supply-and-demand dynamic.

“Pre-owned inventory has become the safe harbor,” says a dealer quoted in Hodinkee’s August 2025 report. “Buyers are realizing they can avoid the tariff premium and still get authentic Swiss craftsmanship.”

Chrono24 data shows a 15 percent spike in listings and 17 percent increase in prices for Rolex and Omega models between; July and September 2025 (Chrono24 Magazine, 2025).

 

 

Average Pre-Owned Price Change (June–Sept 2025)

 

 

4.1 Resellers Step into the Spotlight

For U.S.-based resellers like Claudio & Co Luxe, this market shift is an opportunity to educate buyers and adapt inventory strategy:

  • Highlight models that were imported pre-tariff.

  • Source domestically from private collectors to avoid import duties.

  • Promote value in authentic, certified pre-owned pieces that carry no tariff premium.

As luxury watch prices inflate in retail, the pre-owned sector becomes not only a bargain but a hedge against policy volatility.

 

 

5. Macro Consequences for the Watch Industry

5.1 Manufacturers Rethink Distribution

Several Swiss brands are considering shifting assembly or finishing to other European countries to bypass tariffs (The Fashion Law, 2025). If even partial manufacturing occurs outside Switzerland, those watches may qualify for lower duty rates.

This mirrors what the automotive sector did during previous trade spats: geographical supply chain adjustment to minimize tariff exposure.

5.2 Investor Behavior and Grey Market Activity

Where there is constraint, there is arbitrage. European and Asian resellers are already buying U.S.-bound inventory to resell abroad at a premium. Secondary watch indices (WatchCharts, Aug 2025) show a 6 percent increase in average resale value for stainless-steel sport models since the tariff announcement.

6. Consumer Sentiment and Long-Term Outlook

A September survey by WatchPro (2025) found that 41 percent of U.S. buyers plan to delay new purchases until prices stabilize. At the same time, younger buyers (ages 25–35) are more open to buying pre-owned, signaling a potential permanent shift in demand.

If the tariffs remain in place through 2026, analysts expect Swiss watch exports to the U.S. to drop by 25–30 percent, with the pre-owned segment absorbing a portion of that volume (Reuters, 2025).

 

 

7. Strategic Takeaways for Dealers and Collectors

  1. Price transparency will matter more than ever. Buyers will demand clarity on whether tariffs affect the piece they’re buying.

  2. Inventory timing is key. Pre-tariff stock is gold. Post-tariff imports should be priced strategically.

  3. Certification and authenticity gain importance. As grey market activity increases, buyers will gravitate to trusted sellers.

  4. Diversify brand mix. German and Japanese manufacturers may gain market share as Swiss prices climb.

  5. Educate your customer base. Articles like this one are not just SEO tools—they build trust and authority.

 

 

8. Conclusion: Navigating the New Era of Luxury Watches

The luxury watch industry has always been a mirror for broader economic forces—from currency fluctuations to consumer confidence. Now, trade policy joins that list.

Whether the tariff is temporary or endures, its impact on the tariff effects on the watch market will be felt for years. For dealers and collectors alike, this moment is a test of adaptability—and perhaps an opportunity to redefine value in a world where every second counts.

 

 

References


  • Reuters (2025). Swiss Luxury Watchmakers Drop After Tariff Shock.

  • Swissinfo.ch (2025). Swiss Watch Industry Faces Problems Due to U.S. Tariffs.

  • Fratello Watches (2025). U.S. Import Tariffs on Swiss Watches.

  • The Fashion Law (2025). How Trump’s 39% Tariff on Swiss Goods Could Reshape the U.S. Watch Market.

  • GQ (2025). The New Price of Time: Swiss Watch Tariffs and the Future of Luxury.

  • Hodinkee (2025). Secondary Watch Market Boom After Tariffs.

  • Chrono24 Magazine (2025). Tariffs, Timepieces & Trump – How Could the U.S. Tariff Changes Influence the Watch Industry?

WatchCharts Index (2025). Market Data on Luxury Watch Resale Values.

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