The Impact of Trump’s Tariffs on the Luxury Watch Industry

Luxury Watches Face a High-Stakes Trade Shift

Luxury watches have long represented timeless craftsmanship, precision, and prestige. But in 2025, they’ve become part of an unexpected trade war. As part of the sweeping new tariffs announced by President Trump on April 2, a 31% tariff has been placed on all imports from Switzerland — a move that’s now sending ripples through the global luxury timepiece market.

Luxury watches have long represented timeless craftsmanship, precision, and prestige. But in 2025, they’ve become part of an unexpected trade war. As part of the sweeping new tariffs announced by President Trump on April 2, a 31% tariff has been placed on all imports from Switzerland — a move that’s now sending ripples through the global luxury timepiece market.

The U.S.: Switzerland’s Biggest Watch Buyer

For Swiss watchmakers, the United States isn’t just another market — it’s their largest export destination. According to the Federation of the Swiss Watch Industry, Swiss watch exports to the U.S. totaled more than $3.4 billion in 2024. A 31% tariff on those goods threatens to drastically reduce demand, especially for entry- to mid-level models that are more price-sensitive.

Premium brands like Rolex, Patek Philippe, Audemars Piguet, and Omega — while known for strong brand loyalty — may still feel the impact. Even affluent customers may hesitate when faced with sudden price hikes of thousands of dollars per piece.

Consumers Could See Prices Rise 30% or More

With the 31% duty on top of existing import costs, U.S. consumers could see retail prices on luxury watches rise by 30% or more. A Rolex Submariner that previously sold for $10,000 might now retail for $13,000 or more. Limited edition models from Audemars Piguet or Patek Philippe could face even steeper increases.

This pricing pressure could shift demand toward pre-owned or grey market alternatives, especially as economic uncertainty continues.

Grey Markets and Resellers May See a Boom

As official prices increase, one unintended consequence may be the resurgence of the grey market. Resellers may begin sourcing watches through alternative channels, especially in countries not impacted by U.S. tariffs, and undercutting authorized retailers. According to a recent Chrono24 Magazine analysis, the grey market often fills gaps when authorized pricing rises or supply is constrained.

This can undermine brand control and hurt long-term value perception, especially in markets where authenticity and provenance matter most. At the same time, pre-owned platforms may benefit from increased interest as buyers search for value.

How Brands and Retailers Might Adapt

Luxury watch brands — many of which still follow traditional production and distribution models — may explore new strategies to mitigate the impact:

Delaying new releases or scaling back U.S. allocations


Exploring final assembly or packaging in non-tariffed regions


Shifting more inventory to European or Asian markets where tariffs are not as steep


Leaning more heavily on the pre-owned and resale ecosystem

Additionally, retailers in the U.S. may begin increasing their focus on domestic resale or certified pre-owned offerings to maintain price stability for consumers.

How 3PL Center Supports High-Value Product Fulfillment

For businesses shipping high-value items like luxury watches, it’s more important than ever to have a reliable logistics partner that can handle secure warehousing, customs support, and end-to-end tracking.

At 3PL Center, we offer:

Secure, monitored warehouses to store and distribute luxury goods


Container and LTL import support, including bonded warehouse services if needed


Customs documentation assistance and real-time tracking through our WMS

Real-Time Inventory Visibility that’s essential for serialized goods and high-value SKUs


White glove fulfillment options for high-end goods that require special handling

Whether you're importing timepieces, managing a retail distribution strategy, or handling luxury inventory through e-commerce, we provide the visibility, security, and flexibility you need during a volatile trade environment.

Looking Ahead: Strategy Is the New Luxury

The 31% Swiss tariff is just one piece of a much larger puzzle. With additional tariffs across Europe and Asia, the luxury goods industry will need to adapt quickly — and smart logistics will play a central role.

3PL Center is here to help luxury retailers and brands maintain control and efficiency as trade policies shift. If your business is navigating new costs, delivery challenges, or inventory pressures due to tariffs, we’re ready to support you.