Rolex watches might be affected by Trump tariff. Credit score: saeid poorat, Shutterstock
A 39 per cent tariff on Swiss imports will come into pressure on August 7, 2025, sending shockwaves by the posh watch market as manufacturers together with Rolex brace for worth hikes and shifting client behaviour.
Introduced by Donald Trump in a sweeping govt order, the tariff targets all Swiss imports and is a part of a broader overhaul of U.S. commerce coverage. With Switzerland missing a proper commerce settlement with the U.S. by the August deadline, it now faces one of many highest international tariff charges beneath 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. final yr, making America its high market since 2020. However the brand new 39 per cent levy is forcing main manufacturers – together with Rolex, Omega, Patek Philippe, and Vacheron Constantin – to decide on between absorbing the prices or elevating costs.
In line with FOX Stay Now, ‘some costs [are] reportedly rising as a lot as 15 per cent in anticipation,’ particularly for gold fashions and high-end timepieces. Impartial manufacturers with out deep monetary buffers are notably weak.
The Wall Avenue Journal stories that Swatch Group, which posted “double-digit” progress in U.S. gross sales earlier this yr, warned traders that tariffs, foreign money shifts, and gold costs may squeeze margins additional.
Second-hand watch market might profit
Whereas luxurious retailers brace for affect, collectors are already seeking to the pre-owned marketplace for reduction.
In line with FOX, the second-hand trade now accounts for almost one-third of worldwide watch gross sales, with platforms like Chrono24 and WatchCharts seeing a surge in demand. Costs for used watches have fallen for 13 consecutive quarters, making them more and more engaging to price-conscious consumers.
An evaluation by Morgan Stanley and WatchCharts discovered that second-hand demand is rising sooner than the brand new market – particularly for investment-grade watches like Rolex and Patek Philippe, which are inclined to retain worth.
Will watch collectors pay extra for status or pivot to the second-hand scene?
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