The global luxury watch market finds itself bracing for an unprecedented upheaval following the proposed implementation of a ‘seismic’ 39% tariff on Swiss imports. This significant economic policy shift is poised to send shockwaves across the industry, profoundly impacting everything from manufacturing strategies to consumer purchasing habits for elite timepieces.
Industry experts, including Eugene Tutunikov, CEO of Swiss Watch Expo, have openly expressed their astonishment, describing the announcement as a “complete shock” with immediate and far-reaching effects. This tariff escalation represents more than just an additional tax; it is fundamentally reshaping the established dynamics of the international watch trade.
Even prior to this latest development, leading brands like Rolex had already implemented price adjustments in the US this year, actions that market analysts from Morgan Stanley linked to anticipated tariff pressures. The impending 39% import tariff now places an even greater financial burden on these luxury watchmakers, threatening to significantly alter their profitability and market positioning.
The direct consequences for American consumers are stark: a probable surge in the cost of newly imported Swiss-made luxury watches, or a noticeable reduction in the available inventory. These new import tariffs create a barrier that will inevitably lead to higher retail prices for sought-after models, making them less accessible to the average buyer.
In light of these impending changes, industry figures like Joshua Ganjei, CEO of European Watch Company, predict a significant pivot towards the pre-owned timepieces market. Collectors may increasingly favor secondhand models purchased from US-based sellers, as these will naturally circumvent the added costs associated with new Swiss-made watches shipped from overseas.
This substantial 39% tariff instantly transforms new releases from iconic Swiss brands into an exclusive luxury that many American collectors may struggle to justify. The economic reality forces a re-evaluation of value, pushing discerning buyers to seek alternatives within the robust secondary watch market, bolstering its demand significantly.
However, the pre-owned watch market itself is not immune to these systemic pressures. While existing inventory within the US will not directly incur the new import tariffs, the surge in demand from buyers shying away from expensive new models could independently drive up prices on the secondary market, creating a ripple effect across all price segments.
Tutunikov further postulates that the pre-owned watch market, known for its agility, will likely react “much faster” to these heightened tariffs than larger, more bureaucratic retailers. This anticipated rapid response underscores a fundamental divergence, marking a clear divide between the pricing structures and market behavior of the new and pre-owned sectors.
Ultimately, this ‘seismic event’ signifies a critical juncture for the luxury watch industry. The future landscape will be defined by how brands adapt, how consumers respond to altered Rolex prices and other valuations, and the extent to which the pre-owned watch market absorbs the shifts, navigating an entirely new era shaped by unprecedented import tariffs.
