The 31 percent tariff on Swiss watches, imposed by U.S. President Donald Trump’s new policy, is shaking up the luxury watch industry. New Swiss watches will become much more expensive — a $10,000 Rolex could cost over $14,000 after tariffs and taxes, depending on the state. But at the same time, the pre-owned watch market is seeing an unexpected surge in demand, dealers report.
“Last week was our strongest week of the year, driven by strength in Rolex sales,” said Eugene Tutunikov, CEO of SwissWatchExpo, in an interview with WWD. He added it was unusual to see such strong sales while stock markets were falling.
This rise in pre-owned watch interest is similar to the boom during the COVID-19 pandemic, when buyers treated collectible luxury watches as investment assets. During that time, Rolex’s share of the secondary market hit a record 43.9 percent in early 2022, according to reseller Chrono24.
Carol Altieri, COO of Bob’s Watches, confirmed the trend. “We are noticing an increase in both the sell and buy side of the industry,” she said. Her company is expanding inventory to meet growing demand. They plan to keep prices lower to attract more customers.
Some Swiss watch brands are reportedly holding back on new watch distribution. This could increase demand for pre-owned models even more. “So far, our inventory has stayed steady,” Tutunikov said. “But if production stops like during COVID-19, demand for pre-owned watches could surge and supply could become scarce.”
However, not all dealers are seeing the same rush. John Shmerler, CEO of The 1916 Company, said, “Certain sectors like car dealers experienced inventory runs toward the end of March when tariffs seemed imminent. But we haven’t seen similar trends in our stock. Some sectors may change buying habits, and we are ready to adapt.”
Switzerland is famous for making some of the world’s finest watches. The new tariffs affect a wide range of brands — from ultra-luxury names like Patek Philippe, Audemars Piguet, and Richard Mille, to mid-tier brands like Rolex, Omega, and Tag Heuer, and even more affordable brands like Swatch.
While luxury buyers are usually less sensitive to price changes, other factors could influence sales. Randall Holcombe, economics professor at Florida State University, told WWD that fears of a recession and market volatility may also impact U.S. sales of Swiss watches.
John Shmerler pointed out that the strength of the U.S. dollar will be important. “If the dollar weakens, demand for both ultra-luxury and mid-tier brands may stay steady. But if the dollar strengthens, some ultra-luxury buyers might look for better value elsewhere,” he said. “We are watching these economic shifts closely.”
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