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On April 2, 2025, President Trump announced sweeping reciprocal tariffs on imports from over 100 countries. Switzerland, one of America’s largest trade partners in luxury goods, was placed in a top tier at 31%. By August 7, when the tariffs took effect, the rate on Swiss imports had been raised to 39%. For three months, every Swiss-made watch entering the United States carried a duty that nearly doubled its landed cost. The impact on the watch industry was immediate, measurable, and far-reaching.
By November 14, the U.S. and Switzerland reached a framework agreement to reduce the tariff to 15%, in line with the rate applied to European Union goods. The deal, formalized on December 10, brought relief to an industry that had been bracing for permanent disruption. But the effects of those 99 days at 39% continue to shape pricing, supply, and buyer behavior heading into 2026. This article traces what happened, what changed, and what it means for anyone buying or selling watches today.
The Timeline
The sequence moved fast. April 2 brought the announcement. By late April and May, Swiss brands and their U.S. subsidiaries were front-loading inventory, shipping as many watches as possible into the country before the tariffs took effect. This pre-loading created a brief surge in export figures: Swiss watch exports to the U.S. were up 10.4% for the first nine months of 2025 in aggregate, despite the collapse that followed.
August 7 was the inflection point. The 39% duty went live, and the flow of new Swiss watches into the U.S. slowed dramatically. September data from the Federation of the Swiss Watch Industry told the story: exports to the American market fell 55.6% year over year, dropping from CHF 355 million to CHF 158 million. The U.S., which had been the single largest destination for Swiss watch exports in 2024, saw its imports cut by more than half in a single month.
Brands responded in different ways. Rolex, Patek Philippe, and Audemars Piguet raised U.S. retail prices by approximately 15%. Other brands, including some under the Swatch Group umbrella, implemented smaller or more gradual increases. A few chose to absorb part of the cost in the short term, betting that the tariff would be temporary. Some independents pulled back from the U.S. market entirely, redirecting supply to Europe and Asia.
The November 14 agreement to reduce the rate to 15% brought stabilization. Importers who had paid the 39% rate after November 14 became eligible for refunds. But those who paid it between August 7 and November 13 were not. And the price increases that brands had already implemented showed no signs of being reversed. As multiple industry analysts noted, brands that raise prices rarely lower them again, even when the cost pressure that prompted the increase has eased.
What It Did to New Watch Prices
The tariff’s impact on retail pricing followed a predictable path. Import duties are applied to the customs value of a watch, which is the price the importer (typically the brand’s U.S. subsidiary) pays its Swiss parent. That cost increase flows downstream through the distribution chain and ultimately reaches the consumer at the register.
At 39%, the math was punishing. A watch with a $5,000 customs value carried an additional $1,950 in duty. For a $10,000 watch, the figure was $3,900. Brands could absorb some of this through reduced margins, but not all of it, and not indefinitely. The result was a round of retail price increases across major Swiss brands in the second half of 2025, ranging from 10 to 15% depending on the brand and reference.
At the current 15% rate, the pressure is lower but still meaningful. That same $10,000 watch now carries $1,500 in duty, which is significant compared to the near-zero environment Swiss brands enjoyed for decades. Industry observers describe 15% as “serious but manageable.” It is enough to justify the price increases already in place but unlikely to trigger another round of hikes on its own. The net effect is that U.S. retail prices for new Swiss watches are now permanently higher than they were in early 2025, by roughly 10 to 15% depending on the brand.
The Secondhand Advantage
The tariff reshaped the economics of buying secondhand in the U.S. in a straightforward way. Pre-owned watches that are already in the country do not carry an import duty. They were brought in before the tariff existed, or they were purchased domestically and have changed hands since. Their prices are set by the secondary market, not by customs.
When new watch retail prices rose 10 to 15%, the gap between new and secondhand widened. A buyer considering an Omega Seamaster, for example, now faces a higher retail price at the AD while the pre-owned market has not adjusted upward by the same amount. The discount for buying secondhand, which already ran 25 to 45% for most non-Rolex brands, became even more attractive.
For watches that trade above retail, the dynamic is different but still relevant. A Rolex Submariner that retailed for $10,000 and traded at $13,000 on the secondary market now retails for roughly $11,500 after the price increase. The secondary market price has also shifted, but the premium over retail has compressed. For a buyer choosing between paying $11,500 at an AD (if they can get allocation) and $13,000 on the secondary market, the calculation has changed.
There is a nuance for pre-owned watches imported from outside the U.S. Tariffs are based on country of origin, not the location of the seller. A Swiss watch purchased secondhand from a dealer in Tokyo and shipped to the U.S. still carries the 15% duty at customs. This means the tariff advantage applies most clearly to watches that are already physically located within the United States. Domestic pre-owned inventory has become more valuable as a result.
Who Felt It Most
The tariff did not affect all segments equally. High-end brands with strong demand and long waitlists, particularly Rolex, Patek Philippe, and Audemars Piguet, had the most flexibility. They could raise prices and absorb some cost through their substantial margins without losing customers. Demand for their most popular references remained robust throughout the tariff period. Watches of Switzerland Group, the largest U.S. retailer of Rolex, reported that demand for core Swiss brands continued to exceed supply even during the 39% period.
Mid-range and entry-level Swiss brands were more exposed. For watches priced between $2,000 and $8,000, where buyers are more price-sensitive, a 10 to 15% retail increase is enough to push some consumers toward alternatives: Japanese brands, German watchmakers, or the secondhand market. Swatch Group, which owns brands across price tiers from Tissot to Omega, flagged tariffs as a material risk in its financial reporting.
Independent authorized dealers, particularly single-location jewelers, faced acute pressure. They pay for inventory at the point of import, so a 39% duty increase hit their cash flow immediately. Larger retail groups could spread the cost across multiple locations and revenue streams. Smaller dealers could not.
Where Things Stand
As of early 2026, the 15% tariff is in effect but the final U.S.-Swiss trade agreement is still being negotiated. The framework deal reached in November was a declaration of intent, not a binding treaty. Both sides expect a formalized agreement in the first half of 2026, but the exact terms remain open. The 15% rate could be adjusted further, or it could become permanent.
In the meantime, the practical reality for U.S. watch buyers is clear. New Swiss watches cost more than they did a year ago, and those prices are unlikely to come back down. The secondhand market offers a larger discount relative to retail than it did before the tariffs. Domestic pre-owned inventory carries no import duty and represents the cleanest value proposition for buyers who want a Swiss watch without paying the tariff premium.
The tariff saga also reinforced something the market already knew: the pre-owned watch ecosystem is structurally important. It is not just a discount channel for price-sensitive buyers. It is a parallel market that operates independently of trade policy, absorbs supply shocks, and provides access to watches that the primary market cannot deliver efficiently. When the new watch pipeline contracted under the weight of a 39% duty, the secondhand market kept functioning.
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This article is for informational purposes only and does not constitute financial, legal, or investment advice. Tariff rates, trade agreements, and market conditions are subject to change. Data cited is drawn from the Federation of the Swiss Watch Industry, WatchPro, Monochrome Watches, Everest Bands, and other publicly available sources as of early 2026. Always verify current tariff rates and trade policies before making purchasing decisions.