Trump’s new tariff could make your Rolex dream even more expensive

As if luxury watches weren’t expensive enough, American buyers may soon be paying even more for a Rolex.

A new 39% tariff on all Swiss imports — announced by the White House in an executive order and set to take effect August 7 — is forcing Swiss watchmakers to either absorb steep costs or raise prices across the board. That decision is already showing up at the retail level, with some prices reportedly rising as much as 15% in anticipation.

Switzerland’s watch industry exported over $6 billion worth of timepieces to the U.S. last year, and now faces a pricing crossroads. While major brands like Rolex have more flexibility, smaller independent brands that depend on American collectors could be squeezed out — potentially sending more shoppers to the pre-owned market in search of deals.

Why the US raised tariffs on Swiss goods

The backstory:

The 39% ad valorem tariff is part of a broader overhaul of U.S. trade policy under President Trump. It builds on an April directive that established a 10% baseline on global imports, followed by a July framework that set tiered rates depending on trade deficits and bilateral agreements.

Switzerland, which had no finalized trade pact with the U.S. by the August deadline, now falls into the highest bracket. The administration cited the $38 billion goods-trade deficit with Switzerland as justification for the move.

Other countries have also been hit with escalated tariffs — Canada’s rate on certain goods rose from 25% to 35%, while Syria, India, and others face import duties between 25% and 41%.

How the tariff could affect luxury watch buyers

What we know:

Retailers are already reacting. Some luxury watches, especially gold models, are reportedly seeing price hikes of 10–15% to offset new import costs.

The brands most affected include Rolex, Omega, Patek Philippe, Vacheron Constantin, and smaller ateliers that export directly to the U.S. without deep corporate buffers.

According to The Wall Street Journal, Swatch Group reported "double-digit" growth in U.S. sales earlier this year — but warned that pricing volatility tied to currency, gold, and tariffs could hit margins. 

What we don't know:

Swatch executives told investors that Americans have so far accepted the hikes because they believe the situation is "homemade [by] the American government."

• Whether Rolex and other brands will raise prices further after August 7.
• How much smaller, independent watchmakers can absorb before cutting back on U.S. operations.If the tariff will face legal challenges or negotiations to lower the rate.

Will the resale market pick up the slack?

The other side:

Watch collectors may already be adapting. Industry data shows the pre-owned market now accounts for nearly one-third of global watch sales — the highest share in any luxury goods category.

Platforms like WatchCharts and Chrono24 have seen rising demand as shoppers look for value. Prices for used watches have dropped for 13 straight quarters due to increased supply, making them a tempting alternative for buyers wary of tariff-driven hikes.

An analysis by Morgan Stanley and WatchCharts suggests secondhand demand is growing faster than the primary market, especially for investment-grade brands like Rolex and Patek Philippe that historically retain value.

Big picture view:

The U.S. overtook Hong Kong as the largest destination for Swiss watch exports in 2020, thanks in part to weaker Chinese demand and a growing American collector base. But that growth is now colliding with a volatile mix of policy and pricing.

While brands may hope that demand holds firm, tariffs — paired with a strong Swiss franc and soaring gold prices — could test how far even the most loyal collectors are willing to stretch.