The Trump administration’s recent announcement of tariffs on Swiss-made watches has sent shockwaves through the global watch industry, leading to price increases and potential market disruptions. The tariffs, initially set at up to 31%, triggered an immediate response from the watch community, including a rush by dealers to bring watches into the U.S. ahead of the new trade policies. Although President Trump’s decision to delay the full implementation of the tariffs by 90 days temporarily alleviated some market panic, the effects of a 10% tariff still loom large.
Leading watch brands have already begun to adjust their pricing strategies. Luxury watch giant Rolex was the first to raise prices, increasing its product prices by approximately 3% starting May 1. Omega has followed suit, with an average price hike of 5%. Other major brands, including Richemont Group (which owns Cartier) and the Swatch Group, as well as independent brands such as Breitling, are also expected to follow with similar price increases. LVMH brands, including TAG Heuer and Bvlgari, are anticipated to raise prices in the range of 3% to 5%.
These price hikes, caused by the new tariffs, represent a significant challenge to authorized dealers, who will see their profit margins squeezed. Even the modest 10% tariff has already triggered an increase in the cost of many popular models, pushing consumers to consider second-hand markets for better deals. Boston-based European Watch Company’s Joshua Ganjei notes that while the policy shift puts pressure on traditional retailers, it creates substantial opportunities for the secondary market. He explained, “Collectors will likely turn to local secondary sellers if retail prices increase substantially.”
However, not all watch brands are experiencing the same level of disruption. High-end independent watchmakers, whose clientele is less sensitive to economic fluctuations, have taken a more measured approach. H. Moser & Cie CEO Edouard Meylan, who was initially caught off guard by the 31% tariff announcement, remained composed in response. He explained, “Our relationships with U.S. retail partners are built on trust and long-term goals. Most of this year’s orders were placed before the tariff announcement, and we have not received any cancellations. Partners are still confident that the situation will resolve itself.”
Meylan’s company took proactive steps, shipping orders in advance to avoid the tariff’s impact, and while the full 31% tariff was suspended, the ongoing 10% tariff continues to worry consumers, especially as they face higher price tags in authorized dealerships.
Though luxury watches are no longer essential for telling time in the modern age, their status as high-end commodities means that tariff-induced price hikes could significantly dampen consumer demand. For those hoping to purchase a new Rolex Submariner, Omega Speedmaster, or Cartier Tank in the near future, the reality is clear: buyers will need to brace for tens of thousands of extra dollars to acquire their coveted timepieces.
In summary, the watch industry faces a period of significant change as it navigates the impact of tariffs, with both price increases and shifting consumer behavior at the forefront.
