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39% Tariff on Swiss Imports Sends Shockwaves Through Luxury Watch Industry

Taarek Refaat Luxury watch collectors may want to think twice before stepping into a Rolex boutique this year. The Trump administration's newly announced 39% tariff on Swiss imports threatens to push U.S. retail prices for high-end timepieces sharply higher. The White House unveiled its updated tariff plans on Thursday, raising the proposed rate from the 31% announced earlier this year. The move caught the global watch community off guard, with Switzerland, home to brands like Rolex and Cartier, at the epicenter. Eugene Totonikoff, CEO of the Swiss Watch Market, told Business Insider the announcement was 'a real shock' and that 'its effects will be immediate.' Swiss President Karin Keller-Sutter expressed disappointment, saying the 39% rate far exceeded expectations. Leading brands, including Rolex, have already increased U.S. prices this year, likely in anticipation of higher duties, according to a July report from Morgan Stanley on the Swiss watch market. U.S. imports of Swiss goods have faced a baseline tariff of 10% since April, but the new 39% duty, set to take effect August 7, would dramatically raise costs for luxury watchmakers and could shrink U.S. inventories. While Switzerland can still negotiate with Washington, collectors and dealers may soon have to adjust to a new reality: higher prices or fewer available pieces. Joshua Ganjee, CEO of European Watch Company, predicts more buyers will turn to pre-owned luxury watches instead of newly imported Swiss models. 'For many American collectors, a 39% tariff makes new Swiss releases a luxury that's harder to justify,' he said. Morgan Stanley's report noted that second-hand watch dealers have already seen stronger demand this year as Swiss brands raised their U.S. prices. While pre-owned watch prices have generally fallen since mid-2022, that decline has slowed. However, demand pressure could soon reverse the trend. Although existing U.S. stock won't be hit by the new tariff, Totonikoff warned the secondary market will likely respond 'much faster' than major retailers. He expects pre-owned prices to climb by as much as 10% next month and up to 35% within six months as buyers shift toward available inventory. 'This is not just a tax,' Totonikoff said. 'It's a seismic event that will create a stark divide between the new and pre-owned watch markets.' read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Arts & Culture Lebanese Media: Fayrouz Collapses after Death of Ziad Rahbani Sports Get to Know 2025 WWE Evolution Results