Swiss Watches Tick Toward Trouble Under U.S. Tariffs
U.S. tariffs hit Swiss watches with 39% duties. Prices, jobs, and consumer habits shift as the industry faces a ticking test.
● The U.S. set a 39% tariff on Swiss watches on August 7, 2025.
● Brands rushed exports, sending 45% more watches to the U.S. in July to build stock.
● Prices in America could rise 12–14% once old inventory runs out.
● Buyers are already shifting to the pre-owned market, pushing up resale prices.
The United States has slapped a 39% tariff on Swiss imports, and one of the country’s proudest industries, watchmaking, is bracing for the fallout. For an industry that sells nearly one-fifth of its production to American buyers, the move feels less like a policy adjustment and more like a shockwave.
In the weeks before the tariffs took effect in August, Swiss watchmakers scrambled to ship stock across the Atlantic. Exports to the U.S. jumped almost 45% in July, a rush that allowed brands to build up several months’ worth of inventory. For now, this cushion keeps prices in U.S. shops steady. But once those pre-tariff stocks run down, reality will bite.
That reality means higher prices. Analysts say costs could rise by 12 to 14 percent once the tariffs filter through, adding more than a thousand dollars to the price of a Rolex Submariner and even tacking a hundred dollars onto more modest models like a Tissot PRX. Luxury names with devoted buyers may manage, but the pressure will be intense on mid-tier brands that depend on more price-sensitive customers. Swatch Group has already warned, with blunt certainty, that prices “will go up for sure.”
Unlike other industries, watchmakers have little room to adapt. Swiss law requires that at least 60 per cent of a watch’s value come from Switzerland if it is to carry the prized “Swiss-Made” label. This rule makes shifting production overseas almost impossible, leaving the industry trapped within its own borders.
Consumers, however, are not trapped. Many are turning toward the pre-owned market, where watches avoid new import duties altogether. Dealers say prices in the secondary market are already climbing by 10 to 35 per cent, fueled by younger buyers who see vintage and certified pre-owned pieces as both stylish and practical. What began as a workaround to tariffs may accelerate a long-term change in how people buy watches.
The economic stakes stretch far beyond glossy boutiques in New York or Los Angeles. In Switzerland’s Jura Arc, the heartland of precision watchmaking, small workshops and suppliers depend heavily on exports to the U.S. Tens of thousands of jobs could be at risk if demand falters.
Local officials and industry groups are pressing for relief measures, but negotiations with Washington have so far produced little.
Tariffs are often justified as tools to balance trade, but their real impact shows up in higher prices, shifting consumer habits, and political headaches. For now, Swiss watches continue to tick along in American stores thanks to careful stockpiling.
But when those inventories dwindle, the test will be whether American buyers are still willing to pay the higher price for a piece of Swiss time, or whether time has finally caught up with the industry.
