Tariff impact on Swiss watches: Brands like Rolex suspend shipments to the U.S.

The Swiss Watch Industry in a Wait-and-See Approach Due to Tariff Policies

According to a report by the New York Post, the Trump administration’s “reciprocal tariff” policy is having a significant impact on the global luxury goods market, with Swiss watch brands being directly affected. Top watchmakers such as Rolex, Breitling, and Audemars Piguet are closely monitoring the tariff situation and have suspended shipments to the U.S. This move reflects the brands’ cautious attitude amid uncertainty in trade policies.

The Dilemma of Supply Chain and Pricing

Erik Boneta, a well-known watch dealer in the U.S., stated, “All major brands have suspended shipments.” He pointed out that if the tariffs officially take effect, the entire supply chain will face cost pressures, requiring choices from manufacturers to consumers: either absorb the additional costs or pass the price increases onto buyers. Boneta anticipates that shipments to the U.S. will remain stagnant in the short term, noting, “The Swiss watch industry is known for its caution; they will not rush decisions but will carefully assess the situation.”

Limited Impact on the Second-Hand Market

Although some believe that limited supply of new watches might drive up prices in the second-hand market, Boneta holds a different view. He analyzed, “The stock market has been volatile recently, and consumers are less likely to make impulsive purchases of luxury watches amid economic uncertainty.” This means that even if new watch supply is scarce, demand in the second-hand market may not significantly increase. The suspension strategy of Swiss brands could further intensify expectations and uncertainties regarding high-end watches in the U.S. market.

Conclusion: Challenges in the Luxury Watch Market Under Tariffs

The tariff policies of the Trump administration present unprecedented challenges for the Swiss watch industry. The decision by brands like Rolex, Breitling, and Audemars Piguet to suspend shipments not only affects the supply stability in the U.S. market but also highlights the profound impact of the global trade environment on the luxury goods sector. How the situation evolves in the future will depend on policy directions and the response strategies of the brands.