The luxury watch world received a seismic shock this week as the U.S. government announced a dramatic escalation in trade tensions with Switzerland, imposing a sweeping 39% tariff on Swiss imports that will fundamentally reshape how Americans buy luxury watches.
Key Takeaways
What’s Happening: The U.S. government has imposed a new 39% tariff on all Swiss imports, including luxury watches, effective August 7, 2025.
The Impact: Expect significant price increases on new Swiss watches at authorized dealers. Industry analysts predict a 12-14% increase in retail prices if brands pass the full cost to consumers.
Why It’s Happening: The tariff stems from a U.S.-cited $38.5 billion trade deficit with Switzerland and the failure to reach a new trade agreement.
What It Means for You:
- New Buyers: Purchasing a new Swiss watch will become substantially more expensive. A watch costing $10,000 today could cost over $11,200 after August 7.
- Current Owners: The value of your existing Swiss watches on the secondary market is likely to increase due to rising prices for new models.
- The Market Reaction: Demand for pre-owned Swiss watches is expected to spike as buyers seek alternatives to higher-priced new inventory.
A Tariff Shock to the Watch World
The announcement represents a dramatic escalation from the previous 10% tariff rate, a nearly four-fold increase that has sent shockwaves through the luxury watch industry. This isn’t a gradual adjustment; it’s a seismic shift that takes effect Thursday, August 7, 2025, applying to all watches imported after that date.
The tariff functions like a guided missile aimed squarely at Switzerland’s most prestigious exports. While the order technically affects many Swiss goods, luxury watches represent one of the highest-value targets, as pharmaceuticals and financial services remain largely excluded from the new measures.
“Rolex watches have long been symbols of craftsmanship and controlled scarcity. With the new tariff, we may not just see higher prices, we may see fewer watches, period,” said Paul Altieri, Founder & CEO of Bob’s Watches.
The timing couldn’t be more critical for the industry. With Watches & Wonders still fresh in collectors’ minds and brands preparing their fall inventory shipments, the August 7 deadline has created a frantic race to import stock before the hammer falls.
Behind the Headlines: The Diplomatic Breakdown
Understanding this tariff requires looking beyond the headlines to the complex trade relationship between these two nations. The official U.S. position centers on a staggering $38.5 billion trade deficit with Switzerland, a figure that has grown consistently over the past decade as American appetite for Swiss luxury goods has soared.
Switzerland’s response has been one of bewilderment and frustration. Swiss trade officials point to their elimination of industrial tariffs in 2024 as evidence of good-faith efforts to level the playing field. They argue that reciprocity concerns are unfounded when Switzerland has already opened its markets more broadly than the U.S. has reciprocated.
Perhaps most revealing is what happened behind closed doors during the final negotiations. Sources close to the talks indicate that Swiss negotiators believed they were on the verge of securing a modest 10-15% tariff increase, a figure both sides could live with. However, a last-minute call between heads of state reportedly resulted in the surprise 39% figure, leaving negotiators scrambling to understand what had gone wrong.
This diplomatic miscalculation now threatens to reshape not just trade relations, but the entire landscape of luxury watch retail in America.
The Bottom Line: How 39% Impacts Your Wallet
The mathematics of this tariff are stark and immediate. For consumers, the question isn’t whether prices will rise. It’s by how much and how quickly.
For New Watch Buyers
The impact on retail pricing will vary by brand strategy, but our analysis of current market prices reveals the stark reality facing buyers. Based on Bob’s Watches’ comprehensive tracking of authorized dealer pricing, here’s what the tariff means for popular models:
| Watch Model | Current Price | Projected Price (Post-Tariff) | Price Increase |
| Omega Speedmaster Professional | $7,000 | $7,840 | +$840 |
| Tudor Black Bay 58 | $3,975 | $4,470 | +$495 |
| Breitling Navitimer B01 | $9,900 | $11,080 | +$1,180 |
| Oris Aquis Date | $2,400 | $2,680 | +$280 |
These projections assume brands pass through approximately 75% of the tariff cost to consumers, which our industry sources suggest is the most likely scenario. The remaining 25% would be absorbed through reduced margins or operational efficiencies.
Brands face an uncomfortable choice: absorb the additional cost and sacrifice already-thin margins, or pass the burden to consumers who are already dealing with years of price increases. Industry insiders suggest most brands will opt for the latter, meaning consumers will bear the full brunt of this trade dispute.
The timing compounds the challenge. Many popular models already command waiting lists, and this price increase could push certain Swiss watches beyond the reach of middle-market consumers who have historically formed the backbone of the industry’s growth.
For Existing Collectors
If you currently own Swiss watches, this news represents an unexpected windfall. Your collection just became measurably more valuable overnight. As the price of new watches in the primary market climbs, secondary market values for identical models inevitably follow.
This phenomenon has already begun in anticipation of the tariff. Pre-owned dealers report increased inquiries about current inventory values, and some collectors are exploring strategic sales before the market fully adjusts to new pricing realities.
For the Watch Industry
The industry itself faces its most significant disruption in decades. Major players like Rolex, Patek Philippe, OMEGA, and the entire Swatch Group must now recalibrate their U.S. strategies. Some may explore shifting production to non-Swiss facilities, while others might prioritize different markets entirely.
Authorized dealers are scrambling to import maximum inventory before August 7, creating short-term cash flow pressures and storage challenges. Many are already adjusting their ordering patterns and reconsidering floor plan financing arrangements.
The Pre-Owned Market: A New Epicenter
This tariff has thrust the pre-owned watch market into the spotlight as never before. With new Swiss watches becoming substantially more expensive, savvy buyers are pivoting toward pre-owned alternatives that avoid the tariff entirely.
The benefits for buyers are compelling: access to the same watches without tariff-inflated pricing, potentially better value propositions, and immediate availability without waiting lists. However, this surge in demand creates its own challenges.
Popular pre-owned models, particularly recent Rolex sports watches like the Submariner and GMT-Master II, Patek Philippe complications, and limited editions, are likely to see rapid price appreciation as demand outstrips supply.
This shift also elevates the importance of dealer reputation and authentication services. As more buyers enter the pre-owned market for the first time, the need for trusted partners who can guarantee authenticity and condition becomes paramount.
What Happens Next?
The road ahead remains uncertain, with several scenarios playing out simultaneously. The decisions made in the coming weeks could permanently alter how Americans buy Swiss watches for years to come.
Last-Minute Diplomacy
Swiss government officials continue pushing for negotiations before the August 7 deadline. While diplomatic sources suggest these efforts face long odds, the potential for a modified agreement or delayed implementation cannot be entirely dismissed. However, industry participants are planning as if the tariff will take effect as scheduled.
Brand Strategies
Major Swiss watch manufacturers are actively exploring contingency plans. Some may reallocate inventory toward European and Asian markets where Swiss watches face no additional barriers. Others are considering shifting certain production lines to facilities outside Switzerland, though such moves would take years to implement meaningfully.
Pricing strategies will vary significantly. Premium brands with strong pricing power may pass through the full tariff cost, while volume-oriented manufacturers might absorb portions of the increase to maintain market position.
Long-Term Market Evolution
This tariff could permanently alter American watch buying patterns. Increased interest in non-Swiss alternatives seems inevitable as price-conscious consumers explore options.
The secondary market’s enhanced prominence may also prove lasting. If consumers become more comfortable with pre-owned purchases during this disruption, it could accelerate the market’s maturation and sophistication.
The Swiss watch tariff represents more than a trade policy adjustment. It’s a fundamental reshaping of the American luxury watch landscape. Whether you’re looking to buy your first luxury watch, building a collection, or working in the industry, understanding these changes will be crucial for navigating the market ahead.
