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39% Tariff Takes Aim at Swiss Watches

New tariffs could drastically increase luxury watch prices in the US, impacting sales.

August 2, 2025 at 09:51 AM

A 39% Tariff on Swiss Watches Could Spike Even Used Rolex Prices

The US government's tariffs on Swiss imports may lead to significant price hikes for luxury watches.

39% Tariff on Swiss Goods Could Reshape Luxury Watch Market

The recent decision by the US government to impose a 39% tariff on imports from Switzerland has sent shockwaves through the luxury watch industry. With brands like Rolex and Cartier adapting to increased costs, experts predict that both new and pre-owned luxury watch prices could soar dramatically. The Swiss watch market, already under pressure from a previous 10% baseline tariff, now faces an uncertainty that could alter purchasing habits. As collectors weigh their options, they may increasingly turn towards pre-owned pieces to avoid the high costs associated with newly imported models, expected to be impacted by the new tariff set to take effect on August 7.

Key Takeaways

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The 39% tariff could lead to immediate price increases on new Swiss watches.

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Pre-owned watches may see heightened demand as customers seek less expensive options.

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Swiss watch brands have already raised prices this year in anticipation of tariffs.

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Demand for pre-owned luxury watches is expected to rise, potentially driving prices up.

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The secondary market may react more quickly to price hikes than retail sellers.

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This tariff represents a significant shift in the luxury watch purchase landscape.

"This isn't just a tax; it's a seismic event that will cause a stark divergence between the new and pre-owned markets."

Eugene Tutunikov describes the potential impact of the tariff on different market segments.

"For many American collectors, the 39% tariff instantly turned new releases from Swiss brands into a luxury few can justify."

Joshua Ganjei emphasizes the impact of the tariff on the purchasing behavior of collectors.

"Its effects will be immediate."

Eugene Tutunikov comments on the rapid changes expected in the watch market.

"Pre-owned market demand is expected to rise significantly as consumers adjust to higher new prices."

Industry analysts note a shift towards the pre-owned market in response to rising costs.

This tariff presents a complex challenge for luxury watch brands and consumers alike. The immediate effect might be a surge in pre-owned watch sales, which could shift the market dynamics significantly. Brands that once dominated the new luxury space may find themselves competing with a booming secondhand market. As CEO Joshua Ganjei pointed out, the tariff effectively redefines what it means to be a luxury buyer in the US, sparking a potential shift in consumer loyalty from new to pre-owned options. The long-term implications for pricing strategy and inventory might lead to greater price disparities in the industry.