As we move deeper into 2025, the luxury watch industry is facing a pivotal moment—oneshaped not just by shifting tastes and technology, but by policy. With the United States preparingto implement new tariffs on Swiss-made watches and other European goods, collectors, retailers,and manufacturers alike are holding their breath.
What’s Happening?
The U.S. government has proposed a new wave of tariffs as part of ongoing trade negotiationswith the European Union, specifically targeting luxury goods. While the full details are stilldeveloping, early drafts indicate that Swiss-made mechanical timepieces may face tariffs as highas 25%, a dramatic increase that would ripple across the entire industry. If enacted, these tariffs could affect not just major names like Rolex , Omega, and Patek Phillipe, but also smaller independent brands, gray market dealers, authorized retailers, and ultimately, theconsumer.
The Impact on Prices
A 25% tariff on imported Swiss watches is expected to significantly impact pricing and market behavior.
A $10,000 Rolex could see a $2,500 price increase at retail or in the secondary market.
Sellers will likely pass on the added costs to buyers.
Authorized dealers may need to adjust pricing strategies or renegotiate with suppliers.
Pre-owned dealers like JD Watches may face rising acquisition costs and heightened client urgency to buy before prices climb.
The Gray Market Shakeup
One of the most immediate effects could be felt in the gray market. Parallel importers and online resellers may struggle to maintain their current margins, especially on already high-demand models like the Rolex Submariner, AP Royal Oak, or Patek Nautilus. We could see more sourcing from non-EU countries, a rush in pre-tariff buying, or an uptick indemand for U.S.-based inventory already cleared through customs.
Recent U.S. Tariff Developments and Their Impact on the Watch Industry
As of April 9, 2025, U.S. tariff policy has undergone significant changes, with wide-reaching implications for the luxury watch industry. The U.S. government has proposed a 25% tariff on Swiss-made watches, set to affect major brands like Rolex, Omega, and Patek Philippe. This tariff could cause substantial price increases, potentially raising retail prices by thousands of dollars for high-demand models. These changes are part of a broader trade dispute with the European Union, specifically targeting luxury goods as part of ongoing negotiations. As a result, many collectors are rushing to purchase watches before these price hikes become a reality.
In addition to the Swiss tariffs, China has continued to be a focal point of the tariff discussion. The U.S. has imposed a 125% tariff on certain Chinese goods, including electronics and luxury items, with major disruptions expected in these industries. This escalation of tariffs between the two nations has led to rising costs for both U.S. consumers and businesses.
However, in a bid to ease market tensions, the U.S. government also announced a 90-day suspension of most reciprocal tariffs , reducing the baseline tariff rate to 10% for many imported goods. This temporary measure provides a short window for trade negotiations between the U.S. and various countries, including China and members of the EU, allowing some industries to stabilize and avoid further disruptions. However, this suspension does not apply to China, where the aggressive 125% tariff remains in place.
With the potential for further tariff escalation or even additional suspensions, the watch industry is on edge, and the next few months will be crucial in determining how these shifts will reshape pricing, sourcing strategies, and market dynamics.
Is Now the Time to Buy?
In short—yes. If you’ve had your eye on a stainless steel Sky-Dweller, an Omega Speedmaster,or a Cartier Santos, the window to purchase before price increases may be closing quickly. Manycollectors are accelerating their plans, and we expect buying activity to increase over the comingweeks.
At JD Watches, we’re working closely with our global network to secure inventory and keeppricing transparent and competitive for our clients. Whether you're buying, selling, or trading,we’re here to help you navigate the changing landscape.
The Future of Swiss Watchmaking
While the potential for rising tariffs may cause temporary turbulence within the watch industry, it’s important to recognize that the essence of Swiss watchmaking remains steadfast. Despite the challenges posed by political or economic shifts, the long-term appeal of Swiss-made timepieces continues to thrive. This enduring attraction lies in the impeccable craftsmanship, rich heritage, and unrivaled prestige associated with these timepieces—qualities that have solidified their status as symbols of luxury for generations.
Swiss watches are more than just tools for timekeeping; they are a reflection of centuries of precision engineering and an intricate artistry that combines innovation with tradition. The watchmakers of Switzerland have mastered the delicate balance of technical excellence and aesthetic beauty, creating pieces that are as much about heritage as they are about functionality.
Even in the face of potential price hikes due to tariffs, the demand for these watches remains unshaken. If anything, these tariffs may add a layer of exclusivity, making these coveted items even more desirable. Scarcity is a powerful driver of value in the luxury market, and limited-edition or historically significant models will likely see their allure grow as availability diminishes. For collectors and enthusiasts, the opportunity to own a piece of horological history becomes more compelling when the market’s supply is constricted.
Moreover, the status and prestige of owning a Swiss-made timepiece only amplify over time. Watches from renowned brands like Rolex, Patek Philippe, and Omega are not just investments in craftsmanship, but in culture and legacy. These timepieces transcend mere fashion trends, evolving into heirlooms passed down through generations, each with its own story.
Ultimately, while tariffs may introduce short-term disruptions, the Swiss watchmaking industry’s ability to weather these changes and retain its cultural and technological supremacy ensures that its future remains bright. The timeless appeal of these extraordinary watches—marked by their craftsmanship, exclusivity, and legacy—will continue to inspire and attract discerning collectors and enthusiasts for years to come.
Final Thoughts
We’ll continue to monitor the situation closely and keep you updated as new developments emerge. If you have any questions about how these potential tariffs could impact your watch buying or selling plans, don’t hesitate to reach out.
At JD Watches, we’re not just dealers, we’re collectors too, and like you, we’re deeply committed to preserving the value, legacy, and integrity of fine timepieces, no matter what the market conditions bring.
With that in mind, your next statement piece awaits!
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