US Watch Import Duty Surge Pushes Luxury Prices Up 31%

Swiss watch prices in the USA are about to jump dramatically as new tariffs will push luxury timepiece costs up by 31%. Rolex plans to bump their prices by 3% starting May 1st to handle the 10% tariff on Swiss goods – but that’s just the start. That beautiful Swiss timepiece you’ve been eyeing at $10,000 could soon cost you over $14,000, as the US government looks to impose tariffs up to 25% on mechanical watches.

The luxury watch market faces this price transformation at a crucial moment. The US has emerged as Switzerland’s biggest export destination since 2021. Swiss luxury watch sales in the US reached $5.2 billion in 2024, showing a 5% climb from last year. The US market has powered almost 50% of Swiss watch export growth since 2019. Watch buyers should pay close attention to import duty calculations now, as prices will surge in both retail stores and secondary markets.

How Tariffs Are Reshaping the Luxury Watch Market

Switzerland’s luxury watch industry faces tough times as the Trump administration hits them with heavy duties. These sweeping measures have shaken an industry that relies heavily on American buyers.

Why the US is targeting Swiss luxury watches

The US targets Swiss luxury watches because they notice trade imbalances. The administration says these tariffs will fix what they call unfair trading practices. Switzerland stands among the top 25 nations hit hardest by tariffs in a list of 185 countries. The 31% levy on Swiss imports is a big deal as it means that what the EU (20%) and UK (10%) face combined.

Watches make up much of Swiss exports, reaching USD 29.53 billion (6.62%) of Switzerland’s total exports of USD 446.30 billion in 2024. The United States leads as Switzerland’s biggest buyer of timepieces, spending USD 5.20 billion on Swiss watches in 2024 alone. This makes up 17.6% of all Swiss watch exports. The American market is a vital part of the Swiss watch industry.

Swiss officials disagree with these tariff reasons. Their government says they don’t have an unfair trade surplus with the US. They point out that all but one of these US goods can enter Switzerland without any duty.

Timeline of tariff implementation and suspensions

These tariffs rolled out quickly:

• April 2, 2025: Trump announced “Liberation Day” tariffs targeting Swiss-made goods, including watches imported to the US.
• April 5, 2025: A flat-rate additional duty of 10% hit all imports (with some exceptions).
• April 9, 2025: The full 31% tariff on Swiss watch imports kicked in, while EU watch imports faced a 20% tariff.

Nobody knows how long these high tariff rates will stay. The administration dropped the 31% “reciprocal” tariff against Switzerland to the blanket 10% rate until July 9, giving 90 days to negotiate.

Switzerland now leads the pack of nations trying to strike a trade deal, according to US Treasury Secretary Scott Bessent. In spite of that, they haven’t reached an agreement yet, leaving the industry hanging in uncertainty.

Buyers Rush to Secure Watches Before Prices Rise

Watch enthusiasts are rushing to retailers and secondary markets as the upcoming watch import duty in the USA threatens to alter the luxury timepiece map.

Pre-tariff buying frenzy among collectors

Watch collectors have started an unprecedented buying surge after the tariff announcements. Trading volume rose 160% above normal levels at April’s end, which exceeded the usual 112% average increase during previous paydays. Swiss watch exports grew by nearly a fifth in April, and shipments to the US doubled.

“People heard about the tariffs and went, ‘Oh shoot, let’s buy now,'” says Christy Davis, founder of London-based Subdial. Collectors have shown this urgency through various strategies. Wealthy buyers plan to buy in Switzerland and keep their timepieces in bonded warehouses until tariffs might lift. Some collectors target US auctions for high-end watches, finding them advantageous despite 27% buyer premiums.

Which models are seeing the most demand?

Gold Rolex models have seen strong demand due to rising precious metal prices and collector’s changing priorities:

• The yellow-gold Day-Date Ref. 228238 climbed from 30th to 9th position on the Subdial Watch Index
• The bi-metal Datejust Ref. 16233 climbed up 19 places
• The yellow-gold Day-Date Ref. 18038 gained 17 spots

The Bloomberg Subdial Watch Index has bounced back by 5.3% through late May after hitting post-pandemic lows. Collectors still favor timepieces like the Rolex Daytona, Submariner, and GMT-Master, along with models from Patek Philippe.

How prices of luxury watches are expected to change

Luxury watch prices will soon rise in retail and secondary markets. Rolex will increase US retail prices by 3% starting May 1, 2025. Omega plans a 5% price increase, while its parent company Swatch Group confirmed 8-10% increases for certain brands.

Evidence suggests these changes could affect prices by a lot. A $10,000 Rolex might cost $13,100 due to tariffs, with the final price exceeding $14,000 after typical sales tax. The pre-owned market will feel the effects too, as experts predict at least a 5% price increase in secondary markets within six months.

Secondary Market Sees Spike in Activity

The secondary market for timepieces faces major changes as watch import duty USA regulations shake up the industry. Pre-owned watch sales hit USD 24.38 billion in 2023. Experts project these sales will grow at a compound annual growth rate of 9.2% through 2030.

Why pre-owned Swiss luxury watches are gaining value

Pre-owned luxury watches stand as solid assets that hold their worth during economic downturns. These high-end timepieces stay relatively stable even through financial storms, unlike volatile stocks. The secondary market now accounts for one-third of all luxury watch transactions. Limited production runs create a lack of supply that makes these watches more desirable. Buyers might wait up to five years to get certain Rolex models from authorized retailers. Rolex launched its Certified Pre-Owned program in late 2022, which now shows about 5,500 active listings from 61 authorized dealers worldwide. This program gives more legitimacy to the secondary market.

Gray market dealers adjust sourcing and pricing

The 31% tariff has changed gray market economics completely. US market dealers used to source almost half their pre-owned watches from places like Dubai, Hong Kong, and Tokyo. Swiss-made watch imports no longer make financial sense for many dealers who work with 5-15% margins. A Rolex GMT-Master II “Pepsi” that cost USD 18,000 from overseas now costs about USD 24,000 before extra costs. Dealers now focus on domestic inventory and ignore international prices when setting their own.

Inventory challenges and domestic stock advantages

Domestic inventory has become more precious as international sourcing faces disruption. Secondary market pieces take much longer to sell now. Pre-owned Rolex watches need an average of 67 days to sell, up from just 18 days in 2021. Patek Philippe watches take 173 days and Audemars Piguet pieces need 166 days to find buyers, increased from 67 and 46 days respectively. Secondary market prices dropped for nine quarters straight since Q2 2022. These tariffs will likely push prices up as domestic stock becomes more valuable. Watch import duty calculator USA numbers now determine whether dealers can bring in overseas inventory profitably.

Will American Watchmakers Benefit from the Tariffs?

American watchmakers face a crucial moment as watch import duty USA measures transform the market landscape. Swiss import tariffs of 31% raise questions about domestic brands’ ability to compete with European manufacturers.

Opportunities for US-based brands like RGM and Vortic

RGM and Vortic, two American manufacturers, see new possibilities in the market. “The new tariffs may benefit some American watch brands like RGM Watches and Vortic Watches, which are known for creating mechanical timepieces built in the U.S.”. Many industry experts believe “the increase in prices will open the door for less expensive American brands”.

Roland G. Murphy founded RGM in 1992, making it America’s leading watchmaker with in-house movement production capabilities. RGM’s 801 caliber is 90% made in the USA. Vortic has also built its success on American manufacturing. R.T. Custer explains, “These proposed tariffs don’t directly affect us in the traditional sense, since nearly everything we produce is made right here in the U.S.”.

Can American brands compete on craftsmanship and prestige?

The Swiss watch industry’s advantages come from “quality, innovation, heritage and materials that are not easily replicated in the U.S. in the short term”. American brands face significant challenges in gaining market share.

Several American watchmakers showcase exceptional craftsmanship. RGM creates four in-house calibers, “including movements featuring complications like a moonphase and even a tourbillon”. Vortic takes a different path by “restoring vintage American-made pocket watch movements from the likes of Elgin, Waltham, and Hamilton”.

Long-term implications for global watch manufacturing

Experts remain skeptical about tariffs causing a complete manufacturing change. “It’s not something you can flip a switch on,” Custer points out, adding that even with $100 million in funding, building American watch manufacturing infrastructure would “still take years”.

The biggest challenges include:

• Machine deliveries taking “6+ months”
• Skilled labor shortages
• Aging or nonexistent infrastructure
• Manufacturing costs “2-5x more” than importing

Economists suggest better solutions exist than moving manufacturing back home. “One of the most popular among economists would be the use of subsidies, including tax breaks and low-interest lines of credit”.

Conclusion

The recent surge in watch import duties has altered the luxury timepiece market in America. Watch lovers now face a harsh reality – their beloved Swiss masterpieces will cost much more. The market has seen unusual patterns as retailers and collectors rush to adjust. This 31% tariff targets Switzerland’s prestigious watchmaking sector and forces tough choices throughout the supply chain.

The industry faces an uncertain future even with reduced tariffs until July 9. Smart collectors are racing to buy timepieces before full implementation, especially when you have gold Rolex models and other high-end brands in mind. The secondary market shows remarkable changes, and domestic inventory has gained a huge advantage over international sources.

American watchmakers RGM and Vortic could benefit from these tariffs. Yet they struggle to match Swiss craftsmanship and heritage that spans centuries. The challenge to expand American watchmaking remains huge because reliable manufacturing needs substantial investment.

One thing stays clear – luxury watch purchases now come with bigger financial stakes. Buyers must factor in the 31% premium whether they choose authorized dealers or the growing secondary market. These tariffs are not just a passing phase but could revolutionize how people buy, sell, and value luxury timepieces in America. Time will tell if Switzerland and the US can reach a deal before these changes ripple through this elite industry.

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