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A 39% tariff on Swiss imports got here into impact on August 7, 2025, sending shockwaves by means of the posh watch market as manufacturers similar to Rolex Brace for worth hikes and adjustments in client habits.
The tariffs introduced by Donald Trump in a drastic govt order goal all Swiss imports and are a part of a broader overhaul of US commerce coverage. Switzerland is at present dealing with one of many highest world tariff charges beneath the Trump framework, because it lacks a proper commerce settlement with the US by the August deadline.
Switzerland displays exports It’s primarily affected by Trump’s tariffs
Final 12 months, Switzerland exported greater than $6 billion value of watches to the US, making the US the highest market since 2020. Nevertheless, the brand new 39% assortment is forcing main manufacturers, together with Rolex, Omega, Patek Philippe and Virchelon Constantine, to decide on to soak up prices or enhance costs.
In keeping with Fox is alive now“Some costs (are) are reportedly rising 15%, particularly for gold fashions and high-end watches. Impartial manufacturers with out deep monetary buffers are significantly weak.
Wall Avenue Journal The Swatch Group, which recorded “double-digit” development in U.S. gross sales earlier this 12 months, studies that it warned traders that tariffs, foreign money adjustments and gold costs may additional slim the margins.
Second hand watch markets might make a revenue
Whereas luxurious retailers are bracing for impression, collectors are already turning to second-hand markets for reduction.
In keeping with FoxThe second-hand business at present accounts for practically a 3rd of worldwide watch gross sales, with platforms like Chrono24 and WatchCharts seeing a surge in demand. Used watch costs have fallen for the thirteenth consecutive quarter, making them much more engaging to price-conscious patrons.
An evaluation by Morgan Stanley and Watchcharts discovered that demand for second-hand markets is rising quicker than new markets. Specifically, funding grade watches similar to Rolex and Patek Philippe are inclined to retain worth.