On Thursday night, President Donald Trump announced he was escalating tariffs against Switzerland to a potentially devastating 39%. That figure is even higher than the original 31% levy Trump announced in April, before temporarily lowering it to 10% to leave the door open for negotiations ahead of an August 1 deadline. Many of the industry’s biggest brands—including Rolex, Omega, Cartier, and Breitling—responded to that initial 10% tax by increasing prices by 3% to 5%. Earlier this week, I asked the Swiss watch dealer Sacha Davidoff what would happen if the 31% tariff were to return. “That’s a game over number,” he said.
Now, with an even higher tariff looming, the Swiss industry is advocating for the country’s leadership to strike a deal with Trump. “This tariff announcement was a complete shock to the industry, and its effects will be immediate,” said Eugene Tutunikov, CEO of the Atlanta-based pre-owned retailer SwissWatchExpo. The new 39% tariff is currently scheduled to go into effect on August 7. Other countries have had success negotiating their tariffs down; Japan, which also produces and exports vast quantities of watches to the US, were able to knock their levy down to 15%. The potential 39% tax would be a lose-lose for consumers and watch brands alike. Already pricey timepieces are sure to become even more expensive. Meanwhile, the US remains the biggest market for luxury timepieces globally, and it has become an even bigger priority this year as sales lag in other typically strong regions like China.
With prices already up marginally with just a 10% tax, expect many of your favorite brands to hike those increases even higher. “If this tariff remains, consumers are looking at a potential 25% to 35% price increase on new Swiss watches in the fall and winter of this year,” Tutunikov said. Other forecasters were more conservative. Oliver Mueller, the head of LuxeConsult in Switzerland, told Hodinkee prices might raise around 14%.
The threat of tariffs has loomed over every facet of the Swiss industry this year. In April, Swiss watch exports more than doubled year over year, WatchPro reported. In 2024, 342 million Swiss francs’ worth of timepieces entered the US from Switzerland. In 2025, that number jumped to 852 million Swiss francs. Modern retailers, vintage dealers, and customers have all been steeling themselves for a potential tariff hike. In June, several prominent dealers told me that their sales were up considerably. “People feel like prices will go up, so they are buying more now,” said Jacek Kozubek, the prominent dealer behind Tropical Watch.
After the initial tariff announcement in April, brands scrambled to prepare for the 31% tax by emergency shipping watches to the States and buying huge parcels of vintage pieces. With an even more punishing levy now just days away, the pressure on everyone in the watch industry is even greater. “This isn’t just a tax,” Tutunikov said. “It’s a seismic event.”
