On April 9th, 2025, the Swiss watch industry was hit with a major shake-up. The United States introduced a 31% tariff on all Swiss imports, including watches, which could change the game for one of Switzerland's most iconic and valuable exports.
This move, part of broader trade and geopolitical shifts, puts serious financial pressure on Swiss watch brands, US retailers, and, of course, consumers who could feel the impact at checkout.
The US has consistently ranked as the largest export market for Swiss watches, overtaking China in 2021 and maintaining that position through successive years of post-pandemic recovery.
In 2024 alone, Swiss watch exports to the US were valued in the billions of Swiss francs, with leading luxury groups like Rolex, Swatch Group, Richemont, LVMH, and independent houses like Patek Philippe and Audemars Piguet counting on American demand to fuel global growth.
With the 31% import tariff now in effect, the price structures and supply chains that have underpinned Swiss watch sales in the US for decades face disruption. For an industry where brand equity, price positioning, and global prestige are intricately balanced, this is no small matter.
For US-based importers and retailers, the immediate question is: who pays the price?
The answer isn’t simple. Importers may attempt to absorb part of the tariff, but with margins already under pressure in a competitive luxury market, many will be forced to pass on the increased cost to retailers. Retailers, in turn, are likely to adjust pricing upward, particularly in the entry-level luxury and mid-tier segments, where pricing sensitivity is most acute.
A stainless steel Omega or TAG Heuer model retailing for $5,000, for example, could see its price surge well beyond $6,500 overnight. For ultra-luxury watches priced in the five - and six-figure range, this could mean an even more dramatic increase -pricing some models out of reach for collectors and first-time buyers alike.
While high-end collectors may remain largely unaffected - often willing to pay a premium for rare or limited-edition models - the broader US consumer base, including younger and aspirational buyers, may take a step back. Brands targeting this demographic, such as Longines, Tissot, Tudor, and Oris, could feel the greatest squeeze.
This tariff could also have ripple effects on the secondary and grey markets. As new watch prices in the US rise sharply, more consumers may turn to the pre-owned sector to avoid the inflated retail prices.
This increased demand could put further pressure on brand control over distribution and pricing, especially as grey market dealers in regions like the UK - where prices remain unaffected by the US tariff - become a more attractive option for American buyers. The result could be a widening gap between official retail channels and parallel markets, complicating the industry’s efforts to maintain global pricing consistency and supply discipline.
So far, responses from the Swiss watch industry have been muted. Some brands have chosen not to comment publicly, preferring to assess the long-term impact before reacting. Others, particularly those more reliant on US sales, have expressed concern behind closed doors.
Trade associations such as the Federation of the Swiss Watch Industry (FH) have yet to issue a formal statement, though internal sources suggest ongoing dialogue with both Swiss and US trade authorities in hopes of easing or renegotiating the tariff terms.
The mood within the industry is one of unease and uncertainty, as companies scramble to rework pricing strategies, supply chain logistics, and market forecasts.
In the short term, luxury retailers in the US may attempt to bulk-purchase existing inventory to delay the immediate effects of the tariff. However, this is not a long-term solution.
Brands may also consider restructuring their distribution models, increasing regional manufacturing capabilities (as seen with some Swiss brands assembling watches in the US or other tariff-free zones), or shifting marketing efforts toward less-affected regions like Asia, the Middle East, or Europe.
For smaller independent brands, this could prove especially challenging. Without the resources of large luxury conglomerates, the added burden of a 31% import tariff may force some to scale back operations or withdraw from the US market entirely.
The 31% tariff the US has placed on Swiss imports is more than just a financial blow - it could completely alter the balance of the luxury watch market.
The US has been a key player in the recovery of the industry after the pandemic, and this unexpected tariff could slow down that progress, change buying habits around the world, and force watch brands to quickly adapt.
While we won't know the full impact for some time, one thing is clear: 2025 has already brought big challenges for Swiss watchmakers, and they'll need to be flexible, creative, and resilient to navigate what's ahead.
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At BQ Watches, we're here to help you find your perfect watch. If you don’t spot your ideal timepiece in our current inventory, don’t hesitate to reach out to our team. With our extensive sourcing services, we’re dedicated to helping you track down your dream watch. Get in touch with the BQ Watches team today and let’s talk watches!
