⌚ Swiss Watch Shock: U.S. Tariffs Strike the Industry’s Last Safe Haven
Just as Swiss watchmakers were finding gold in the American market, a triple threat of tariffs, currency spikes, and resale disruption puts the luxury industry on edge.
📌 What’s Happening
- Trump has raised tariffs on Swiss watch imports from 10% to 39%, effective August 7.
- U.S. has become the fastest-growing market for Swiss watches, up 14% annually since 2019.
- Swiss brands like Swatch and Richemont reported double-digit U.S. growth in H1 2025.
- Gold price (+25%) and a stronger Swiss franc (+11%) are compounding cost pressures.
- Resale market is booming—one-third of all global watch sales are now preowned.
💼 Strategic Pressure Points
The U.S. has quietly become the Swiss watch industry’s most important market—its growth fueled by younger, digitally savvy collectors and neglected retail potential. But now that America is finally stepping into its role as a luxury giant, it’s also being slammed with tariffs that could reverse progress overnight. Brands are trying to protect margins by raising prices, but with a thriving resale market and hyper-informed buyers, those moves may backfire.
🔁 A Market Already in Flux
Even before the tariffs, Swiss watchmakers were fighting off disruption. Since 2015, the number of watches exported has dropped 45%, even as export value grew slightly—thanks mostly to ultra-luxury models. Entry-level watches under $625 have been devastated by the Apple Watch. Meanwhile, China—once the biggest buyer—never recovered post-COVID, leaving the U.S. as the industry's last real growth engine.
🧠 My Take: The Price of Prestige May Be Too High
This is a defining moment for Swiss watchmakers. Their best-performing market is about to become their most difficult. While Rolex and Patek may ride out the storm, brands like Longines, IWC, and Omega are in a bind. Raise prices, and they lose to resale. Hold prices, and they bleed margin. The irony? American collectors are more passionate and engaged than ever, but they’re also younger, sharper, and more price-conscious. In a world where every watch price is tracked, analyzed, and discussed online, price hikes aren’t just numbers—they’re reputational risks.
📌 Key Takeaway
The U.S. market gave Swiss watchmakers a second life. But now, tariffs, a volatile dollar, and a booming secondhand market may pull the rug out from under them. If brands can’t find a pricing strategy that respects both margin and market savvy, even the most timeless icons may lose their shine.
