How Trump’s Tariffs on Rolex and More Luxury Swiss Watches Are Driving Pre-owned Demand

The 31 percent tariff imposed on Switzerland by U.S. President Donald Trump’s new policy has shaken the luxury watch industry. While new Swiss watches will face steep price increases — a $10,000 Rolex could rise to more than $14,000 with tariffs and taxes, depending on each state — the pre-owned market is seeing an unexpected surge in interest, according to different dealers.

“Last week was our strongest week of the year, driven by strength in Rolex sales,” Eugene Tutunikov, chief executive officer of SwissWatchExpo, told WWD. “It’s hard to tell if it was just from tariffs, but to have such a strong week when stock markets were down…so much is unusual.”

The surge in interest for pre-owned luxury watches resembles the COVID-19-era boom when customers turned to collectible luxury items as investment assets. Brands like Rolex saw unprecedented growth in the secondary market during the pandemic, with Rolex’s market share peaking at 43.9 percent in early 2022, according to a report from watches reseller Chrono24.

“We are noticing an increase in both the sell and buy side of the industry,” said Carol Altieri, chief operating officer of Bob’s Watches. Altieri said the company is currently increasing its inventory to meet the added demand, with the intention of keeping pricing lower and taking the opportunity to reach a larger audience.

According to different resellers, some Swiss brands are choosing to hold distribution, which may increase the demand for pre-owned watches even further.

“Our inventory so far has held steady, but if it’s similar to the COVID-19 situation when production was halted in Switzerland for new watches, it caused a surge of demand in the pre-owned and supply became very hard to come by,” Tutunikov said.

For other resellers, it’s time to exercise caution. “We’ve heard that certain sectors, such as car dealers, have experienced a run on inventory, particularly toward the end of March when it became clear that some action was imminent. However, we haven’t seen similar behavior with our own inventory. That said, we’re aware that some sectors may be adjusting their buying habits, and we’re prepared to respond accordingly,” said John Shmerler, CEO of The 1916 Company.

Switzerland is renowned for producing some of the finest watches in the world. Among the brands affected by the new tariffs are ultra-luxury labels like Patek Philippe, Audemars Piguet and Richard Mille, mid-tier luxury brands like Rolex, Omega and Tag Heuer, and affordable, fashion-focused brands like Swatch.

While price sensitivity doesn’t usually affect luxury buyers, as previously explained by Randall Holcombe, professor of economics at Florida State University, to WWD, some other factors can impact the sale of Swiss brands in the U.S., including fear of a recession and market volatility.

“The discerning factor in the U.S. market will likely be the strength of the dollar. If the dollar weakens further, we don’t anticipate a significant difference between demand for ultra-luxury and mid-tier brands,” Shmerler said. “However, if the dollar strengthens, it’s possible that the ultra-luxury clients may look elsewhere for better value. The shifting economic dynamics will certainly have an impact, and it’s something we’re closely watching.”

“I suspect demand will be hardest hit for watches at over $100,000 price point. Typically, that buyer is very leveraged in the stock market and already has a multiple watch collection. Adding the fifth or 30th watch to the collection won’t excite them much if they lose millions in their equity portfolio,” Tutunikov said.

The new tariffs may benefit some American watch brands like RGM Watches (Pennsylvania) and Vortic Watches (Colorado), which are known for creating mechanical timepieces built in the U.S., though most dealers remain focused on premier Swiss brands.

“The Swiss watch industry has built its reputation on quality, innovation, heritage and materials that are not easily replicated in the U.S. in the short term. In our opinion, this is the primary reason why the tariff doesn’t make sense. It’s a form of punishment that affects the customer in the most negative way, and we’re not going to see a major shift in manufacturing or reclaim significant market share because of it,” Shmerler said.

“I do believe the increase in prices will open the door for less expensive American brands. It will be interesting to see if these brands seize this opportunity,” Altieri said. “We go where the market takes us and will see what the consumer has to say. We are always open to adding additional brands to our inventory.”