Included in the Trump administration’s sweeping enactment of new tariffs aimed at addressing imbalances in trade is a proposed 31% levy on most products coming from Switzerland, currently paused but only until this summer. While that betokens bad news for the country’s cheese and chocolate industries (pharmaceuticals may or may not be exempt), it will have a much more profound effect, dollar-wise, on Swiss luxury watchmakers. Unlike some industries, Swiss luxury watches can’t simply move their production to the States to get around the tariff hike.
Impact of Tariffs on Swiss Luxury Watches
The U.S. is the Swiss watch industry’s biggest export market, accounting for $5.2 billion worth of sales in 2024, a 5% increase from the previous year. And the U.S. has accounted for almost 50% of the growth in Swiss watch exports since 2019. No wonder, as Reuters reported, Switzerland’s top business lobby, Economiesuisse, swiftly condemned the tariffs as “harmful and unjustified,” noting that “Switzerland had abolished its own industrial tariffs from the start of 2024 and already had lower import tariffs than the United States.”
Swiss President and Finance Minister Karin Keller-Sutter, meanwhile, is reportedly trying to negotiate a better deal, and called Trump personally. It is not yet known in exactly what way brands like Rolex and Patek Philippe will respond to the impending tariffs, but potentially significant price hikes seem inevitable, according to Fortune. Rolex has so far declined to make any official comment. Of course, as the world’s largest and most reputable retailer of pre-owned Rolex watches and other Swiss luxury watches, the influential business publication sought comment from Bob’s Watches Founder & CEO Paul Altieri, the industry’s top authority on the subject.
“If the new watch market slows under the weight of tariffs, the pre-owned market may very well become the lifeboat,” Altieri told the magazine. “Savvy buyers looking for value – and availability – will quickly pivot to secondhand, and that could reshape the luxury watch landscape in ways we haven’t seen before.” Indeed, the waiting lists for the most coveted, exclusive, and expensive models from the like of Rolex and Patek, such as the precious-metal Daytona and Nautilus pieces, could even start to shrink as tariffs add even more of a burden to getting your hands on one.
Why Now Is the Time to Buy Pre-Owned Luxury Watches
While prices for the most popular pre-owned Rolex models such as the Submariner and GMT-Master might see a temporary uptick in price, given the likely impact of tariffs on new watches coming from Switzerland, they will still represent an excellent value proposition. There is also the consideration that Rolex watches make excellent investments, which makes them even more attractive in times of economic volatility, such as we are currently experiencing.
As tariffs push up the prices of new Swiss luxury watches, pre-owned models – including sought-after timepieces like the Rolex Daytona – are becoming even more valuable. This trend isn’t limited to just Rolex; the luxury watch market as a whole is seeing increased interest in pre-owned timepieces, which offer both rarity and lasting value. Savvy buyers are already turning to the pre-owned market, and with models from brands like Rolex and Patek Philippe becoming more difficult to find, now is an ideal time to invest in a luxury watch before prices rise further. Bob’s Watches offers a wide selection of pre-owned luxury watches for sale, making it an ideal destination for savvy buyers looking to make a smart purchase before prices rise.
