Escalating U.S. trade tensions and newly imposed tariffs on Swiss imports are rattling the luxury watch industry, with Omega CEO Raynald Aeschlimann warning that economic uncertainty could dampen consumer appetite for high-end timepieces.
“The world was shaken,” Aeschlimann said during a commemorative event in Biel celebrating the 60th anniversary of Omega’s Speedmaster being certified by NASA for manned space missions. The Speedmaster famously became the first watch worn on the moon. “Shaken because there’s uncertainty about what’s going to happen with the economy, what’s going to happen with everybody’s development — and that’s something that doesn’t help us to create this shopping moment.”
In response to the 10% U.S. tariff and the strengthening of the Swiss franc since the unexpected April announcement, Omega raised prices in several markets on May 1, including a 5% hike in the United States. Competitors such as Rolex have also adjusted U.S. pricing to reflect the new trade climate.
Initially set at 31%, the tariff on Swiss goods was postponed for 90 days after a negative reaction from equity and bond markets. While negotiators from affected nations work toward revised trade agreements, the 10% tariff remains in place. Aeschlimann expressed concern that continued tariff pressure may force Omega to raise prices further, potentially pushing its average selling price above the current $7,500 mark.
This turbulence comes at a critical time for Omega. The brand is celebrating the 1965 milestone when its Speedmaster won NASA certification over rivals like Rolex and Longines. According to analysts at Vontobel, Omega is among the top five Swiss watch brands by sales and contributed roughly a third of Swatch Group AG’s brand revenues in 2024.
Aeschlimann noted that economic instability may cause consumers to pause major discretionary purchases, like luxury watches. Nevertheless, he affirmed Omega’s commitment to investing in marketing campaigns, events, and new product launches to mark the space legacy of the Speedmaster line. While speculation has mounted about a potential new “Snoopy” Speedmaster model, Aeschlimann declined to confirm whether it would debut this year.
The Snoopy-themed watches — inspired by NASA’s Silver Snoopy Award — remain highly sought-after, with demand surging since golfer Rory McIlroy wore one after completing his career Grand Slam at the Masters this year.
Aeschlimann’s concerns are echoed by other industry leaders. Audemars Piguet CEO Ilaria Resta also flagged shifting consumer behavior due to trade uncertainty, noting that potential buyers are adopting a “standby mode” when it comes to big-ticket items.
In response to rising gold prices and trade disruptions, Audemars Piguet has made selective price adjustments in the U.S. “These updates are essential for us to continue delivering the highest standards of craftsmanship and service worldwide,” a spokesperson said.
Auction houses, too, are monitoring the situation closely. Antiquorum Managing Director Julien Schaerer, whose firm draws about a third of its clientele from the U.S., warned that a full implementation of the 31% tariff could be devastating. “These political storms are happening every other day, so I’m not panicking until something is really decided for good,” he said.
As the luxury watch industry braces for continued volatility, brands like Omega are pressing forward — balancing resilience with the weight of economic headwinds and global policy shifts.
