An aggressive new tariff on Swiss imports took effect on August 7, sending ripples through the watch world almost instantly.
The 39% tariff—part of a wider sweep that also covers everything from chocolate to precision tools—has landed hardest on the luxury watch trade. For an industry that counts the United States as its single biggest export destination, worth about 16.8% of total Swiss watch shipments in 2024–2025, the change is forcing a rapid rethink of pricing, distribution, and how brands allocate their most coveted models.
The immediate response has been swift, if not entirely coordinated. Swatch Group (parent to Omega, Tissot, and Longines, among others) had been playing defense since April, front-loading shipments and building a 3-6 month inventory buffer stateside. Hayek told Reuters the group front-loaded shipments and has 3-6 months of U.S. inventory; prices were raised approximately 5% post-April. But that's just buying time, as the math on a 39% tariff doesn't solve itself with modest price bumps.
If brands and retailers split the burden rather than pass it all to consumers, a watch that retailed around $8,000 could end up nearer $9,500-$10,000 once tariffs on imported value ripple through wholesale and retail. Exact price impacts will vary depending on brand strategy, currency moves, and retailer policies. Independent brands, without the scale or cash flow to pre-position inventory, face even starker choices.
“A 39% tariff is not a minor adjustment—it reshapes how watches enter the U.S. market, how brands price them, and how collectors think about their next purchase.” - Quaid Walker, CEO.
Swiss watchmakers saw this coming, which explains April's extraordinary export surge. FH data show an approximately 150% April surge to the U.S., followed by a May pullback as front-loaded stock worked through the system. Now, with the rate jumping from 10% to 39%, even the most prepared brands are recalibrating.
The escalation reflects broader trade tensions, but the watch industry finds itself caught in crossfire originally aimed at different sectors entirely. According to Reuters and the Financial Times, COMEX futures hit approximately $3,534/oz amid confusion over whether Swiss bullion bars faced the same 39% tariff—the White House later said it would clarify. This shows how tariff implementation remains fluid, if not outright messy.
The Swiss Federal Council held emergency meetings as last-minute Washington talks failed to secure relief for any sector. Negotiations continue, but brands can't wait for diplomatic solutions.
For collectors, the clock is suddenly ticking in more ways than one. Authorized dealers are scrambling to understand how allocation will shift, while savvy buyers are accelerating purchases of models already in-country. The secondary market, meanwhile, faces its own recalibration as pre-owned prices for Swiss pieces may suddenly look more attractive relative to new retail.
Grey market dynamics could intensify as buyers seek alternatives to newly expensive AD channels. European and Asian markets may see increased demand from American collectors willing to travel for purchases, though warranty coverage and personal import risks complicate that approach.
“The fluidity of the tariff situation as a whole is reflected in variable behavior across buyers. Some are scrambling to obtain the watch they've been waiting to purchase, reasoning that prices will only continue to increase. Others are in a holding pattern, waiting to see what shakes out.
Sellers are grappling with the idea that even if the tariffs end up at less than 39%, they will wholly reshape how, where, and when they get their new supply. For pre-owned watches, the struggle is keeping up with the pricing that is changing by the day.” - Ryan Chong, Chief Marketplace Officer.
According to Reuters, Swatch Group says it already raised prices 5% post-April and built U.S. inventory; analysts note super-premium brands can likely pass through costs more easily than mid-tier players. Large conglomerates like Richemont and LVMH have more tools at their disposal: they can absorb some costs, rebalance allocation toward other markets, or explore assembly operations closer to U.S. consumers. Independents face harder choices: eat the margin, raise prices significantly, or de-emphasize the American market entirely.
Some brands are likely to pivot their approach. Rather than maintaining identical model lineups across all markets, expect to see more regional variation (perhaps simpler complications or different case materials for U.S. offerings). Industry analysts speculate that Swiss brands may explore final assembly or finishing operations stateside, though the economics and timeline make that a longer-term consideration.
The Middle East and Asia suddenly look more attractive as Swiss brands seek to offset American headwinds. But those markets can't fully replace U.S. demand, and they come with their own complexities.
This is where pre-owned markets offer genuine relief. On Bezel, we're beginning to see early signs such as sellers holding back on listing certain Swiss pieces, perhaps anticipating that scarcity will drive values higher. Meanwhile, buyers are showing increased interest in pre-owned alternatives to newly expensive retail options.
Tariffs apply at import; domestic resale of existing inventory isn't tariffed at the point of sale. That creates a window where pre-owned Swiss watches offer better relative value than they have in years. A pre-owned Submariner or Seamaster suddenly looks more attractive when the new equivalent carries a tariff-inflated price tag.
“In the past week, we’ve noticed buyers acting faster and sellers becoming more strategic about timing. It’s rare to see urgency and caution show up on both sides of the market at once.
Moreover, because tariffs only apply at the moment of import, the watches already in the country instantly become more competitive. For many collectors, that makes pre-owned the clearest path to value.” – Quaid Walker, CEO.
The next 3-12 months will be telling. Watch for September's Swiss export data (released mid-October by FH) to show the full impact, and October's retail price lists from major brands to reveal how they're distributing the cost burden. Nevertheless, policy clarification from Washington could still modify the landscape.
Swiss brands spent decades building the American market into their largest export destination. They won't abandon it easily. But they also can't ignore a 39% cost increase. The question isn't whether prices rise further—it's by how much, and whether American consumers accept the new reality or seek alternatives.
“Our focus is on keeping the market transparent and liquid. Even in a volatile environment, collectors should feel they can make informed decisions with confidence.” – Quaid Walker, CEO.
The luxury watch industry has weathered plenty of storms. This one just happens to come with a very precise price tag attached.
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