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The Impact of 2025 U.S. Tariffs on the Luxury Watch Industry
🇺🇸 U.S. TARIFF UPDATE – APRIL 9, 2025
⏸️ 90-Day Pause on Global Tariff Hikes
The U.S. has delayed major tariff increases on most countries for 90 days.
Goal: Ease market concerns & continue trade talks.
📈 China Tariffs Jump to 125%
Tariffs on Chinese imports increased immediately.
→ Reflects ongoing efforts to reduce trade imbalance.
🗝️ Key Takeaway:
Swiss luxury watches are staying at a 10% tariff for now.
Overview
Starting April 9th, 2025, the U.S. was set to impose a 31% tariff on Swiss-made wristwatches, significantly affecting the luxury watch market. Brands such as Rolex, Audemars Piguet, and Patek Philippe are among the hardest hit, with import costs pushing prices higher for American buyers. These new import tariffs are reshaping the market, driving increased interest in pre-owned watches and prompting strategic pricing shifts by major Swiss manufacturers.
The United States 31% tariff on Swiss wristwatches is being implemented in two phases:
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Initial 10% Tariff: Effective April 5, 2025, a baseline tariff of 10% applies to all imports from Switzerland, including wristwatches.
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Additional 21% Tariff: An extra 21% tariff was supposed to be added starting April 9, 2025, bringing the total tariff to 31%.
Therefore Swiss wristwatches imported into the U.S. will be subject to the full 31% tariff.
If you're considering buying a luxury timepiece this year, understanding the current tariff landscape is essential and time is of the essence because buying a Rolex is about to get more expensive. You have two days to shop before full price spikes are realized. Effective Wednesday April 9th, tariffs will rise to the full 31%. Dealers will have a much more difficult time restocking their inventory, increasing scarcity and raising grey market prices.
Breakdown of the New Tariffs
On April 2, 2025, President Donald Trump announced a comprehensive tariff strategy, including:
- 10% Universal Tariff: Effective April 5, 2025, a baseline 10% tariff on all imports, excluding those from Canada and Mexico.
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Country-Specific Tariffs: Additional tariffs based on perceived trade imbalances, such as:
- Switzerland: 31% Total Tariff
- European Union: 20%
- Japan: 24%
- China: 34% (in addition to existing tariffs)
Now, what does this mean for the watch world?
Frequently Asked Questions
Is there a tariff on luxury watches in the U.S. in 2025?
Yes, as of April 2025, the U.S. is implementing a 31% tariff on Swiss products such as luxury watches, including brands like Rolex, Patek Philippe, Audemars Piguet, and others. This is in addition to a universal 10% import tariff on all goods excluding those from Canada and Mexico.
How do import tariffs affect the price of wristwatches?
Import tariffs directly increase the cost of bringing wristwatches into the U.S., which often leads to higher retail prices. For example, a watch previously priced at $10,000 could now cost over $13,000 due to the 31% tariff.
Is there a tariff on Rolex watches imported to the U.S.?
Yes, Rolex watches manufactured in Switzerland are subject to the 31% country-specific tariff, in addition to the universal import duty. This significantly increases the cost of new Rolex imports into the U.S.
Do Audemars Piguet and Patek Philippe watches have import tariffs?
Yes. Both Audemars Piguet and Patek Philippe are Swiss brands, and their watches are subject to the same 31% tariff on imports into the United States in 2025.
Can tariffs be avoided by buying watches in the secondary market?
Pre-owned and secondary market watches already in the U.S. may offer a way to avoid new import tariffs, making them a more attractive option for buyers looking to sidestep the increased costs. However, the market will react to increased cost and difficulty to procure these watches.
Impact on the Swiss Watch Industry
The U.S. is a crucial market for Swiss watchmakers, accounting for approximately 16.8% of Swiss watch exports, valued at 4.4 billion Swiss francs in 2024. The imposition of a 31% tariff poses several challenges:
- Increased Retail Prices: For instance, a Rolex Submariner priced at $9,100 could see its price rise to nearly $12,000 after accounting for the tariff.
- Market Uncertainty: Retailers and consumers face uncertainty regarding pricing and availability, potentially leading to market contraction.
- Financial Pressure on Manufacturers: Companies like Richemont and Swatch Group may experience increased financial strain, especially following a challenging 2024 marked by declining sales in China.
Shipping Challenges for Brands Like Audemars Piguet and Patek Philippe
Luxury watchmakers such as Audemars Piguet and Patek Philippe now face major logistical and financial hurdles when shipping to the U.S. market. The newly imposed 31% tariff on Swiss watches complicates direct exports, forcing brands to reconsider their supply chain strategies. In some cases, manufacturers may limit U.S. allocations or reroute inventory to other markets where import conditions are more favorable. This not only disrupts availability but may also widen waitlists and reduce model selection for American buyers.
Broader Implications for the Luxury Watch Market
The tariffs are expected to reshape the luxury watch market in several ways:
- Shift to Secondary Markets: Consumers may turn to the pre-owned watch market to avoid higher prices on new imports, potentially boosting the resale market for luxury timepieces.
- Strategic Adjustments by Brands: Watchmakers might consider absorbing some tariff costs, adjusting pricing strategies, or exploring alternative markets to mitigate the impact on sales and brand perception.
- Potential Retaliatory Measures: The Swiss government and industry stakeholders may seek negotiations or retaliatory actions to address the imposed tariffs and their effects on the sector.
Conclusion
The 2025 U.S. tariffs present significant challenges for the luxury watch industry, particularly Swiss manufacturers. Stakeholders must navigate increased costs, market uncertainties, and evolving consumer behaviors to sustain their positions in the U.S. market. The long-term impact will depend on responses from both industry players and policymakers in the coming months.