Swiss watch tariffs may alter buying habits

The 39% tariff on Swiss made watches could raise prices for young buyers and push preference toward pre owned pieces.

Tariffs on Swiss watches cool Gen Z luxury push

Gen Z has helped push luxury watches into everyday social currency. A BCG survey found 54% of Gen Z respondents had increased luxury watch spending since 2021, and Sotheby’s says nearly a third of its 2023 watch sales went to buyers aged 30 and under. Now a 39% U.S. tariff on Swiss watches could lift prices and cool demand. The United States remained the top destination for Swiss watch exports in early 2025, with shipments worth about $3.17 billion, according to the Federation of the Swiss Watch Industry. Analysts estimate that brands could raise retail prices by 12% to 14% if they pass the tariff to consumers. For many young buyers, that makes new Swiss pieces harder to justify.

Shifting buying patterns are likely. Industry players say the pre owned market offers value and immediacy as primary market supply tightens. A Boston retailer notes a surge in U S buyers seeking secondhand pieces; some collectors view the secondary market as a pragmatic entry point. Yet the social appeal of high status watches persists for some buyers, with the allure of brands like Rolex, Patek Philippe, or Audemars Piguet remaining a strong draw on platforms such as TikTok and Instagram. The tariff could push allocation toward Europe or the Middle East, where demand remains robust and VAT refunds can sweeten purchases. Swiss producers may respond with pricing adjustments and new strategies to protect jobs and supply chains.

Policy makers are testing a market built on social status and careful price sensitivity. Gen Z's appetite for luxury may endure in the long run, but the tariff exposes how fragile demand can be when costs jump. The appeal of social media driven branding means brands must rethink value storytelling, not just brand fame.

Brands could diversify markets, strengthen domestic resale channels, and retool marketing to show durability and craftsmanship rather than merely chasing the latest drop. If the US market cools, the watch industry may reallocate attention to Europe, the Middle East, and other regions. The bigger risk is the broader message: consumer access to luxury depends as much on policy as on product.

Highlights

Prices may cool for now but the social pull of these watches remains