The Changing Landscape of US Import Taxes on Swiss Watches

The year 2025 brought one of the most significant shifts in the modern history of Swiss watch exports to the United States. Long governed by relatively modest customs duties, the import of Swiss watches suddenly became subject to an aggressive new tariff regime that reshaped pricing, distribution, and purchasing behavior across the industry.

The 39% Tariff: How It Began

In August 2025, the United States imposed a 39 percent import tariff on Swiss-made goods as part of a broader effort to address perceived trade imbalances. Swiss watches were directly affected. The tariff was applied to the import value of each watch — the sum of the watch’s cost, insurance, and freight at the point of entry.

For brands, distributors, and retailers, this represented a dramatic increase in operating costs. Many had little time to prepare, and the sudden rise in import expense forced companies to quickly reassess their US pricing strategies.

Some brands attempted to absorb part of the increased cost to avoid shocking end customers. Others increased retail prices. A number of retailers temporarily halted imports, while several brands accelerated shipments in the days leading up to the tariff deadline, hoping to beat the new charges.

Impact on Consumers and the Market

For US buyers, the most visible effect was immediate price inflation on newly imported Swiss watches. Depending on the brand and its pricing strategy, the increase at retail could be substantial. Because the tariff applied only to newly imported Swiss-origin products, the secondary market grew significantly in popularity. Pre-owned pieces and unsold inventory already in the United States became especially appealing, as these watches were not subject to the new import duty.

The tariff also disrupted purchasing patterns. Some US buyers turned to European or Asian boutiques when traveling, while others considered watches from non-Swiss manufacturers whose pricing was unaffected.

Impact on the Swiss Watch Industry

The United States has long been one of the largest markets for Swiss watches, representing roughly one-fifth of Swiss watch exports. The sudden tariff, therefore, carried meaningful consequences for Swiss manufacturers.

Some brands faced the possibility of reduced US sales volumes. Others contemplated shifting distribution strategies, delaying US launches, or regionally adjusting prices to distribute the financial impact more evenly. Even well-established companies with global reach found the tariff challenging, particularly those with narrower margins or a strong reliance on the US market.

Developments in Late 2025: A Possible Reduction

By November 2025, negotiations between Switzerland and the United States signaled a potential easing of tensions. Officials announced a preliminary agreement to reduce the tariff from 39 percent to 15 percent.

This change, if implemented as described, would dramatically reduce the cost burden on both importers and consumers. However, the adjustment had not yet taken effect at the time of reporting, with implementation expected within a short window of several working days. Even with a reduction to 15 percent, the new rate would remain significantly higher than pre-2025 levels, meaning that brands and retailers might not immediately pass the entire savings on to consumers.

Some brands are expected to maintain higher prices to offset previous losses or to stabilize global pricing structures. Others may gradually reintroduce models to the US market that had been temporarily withdrawn due to tariff pressure.

What Consumers Should Know

For watch buyers and collectors, several principles remain important:

• Pricing may remain volatile as the market adjusts to any tariff changes.
• Watches already in the United States — including pre-owned or long-standing retailer stock — are not affected by import duties and may offer better value.
• Buyers should remain aware of country-of-origin classifications, as the tariff applies specifically to goods declared as Swiss-made.
• Even if tariffs drop to 15 percent, US retail prices may not immediately return to past levels, as brands reassess long-term strategy.
• The situation remains fluid, and further adjustments may occur depending on political and trade developments.

Conclusion

The tariff changes of 2025 created one of the most turbulent periods in recent history for both the Swiss watch industry and the US retail market. While the initial 39 percent tariff introduced significant challenges, the subsequent negotiations and the prospect of a reduced rate offer hope for a more stable environment ahead.

For now, brands, retailers, and collectors alike are watching closely. Whether the adjustment to a 15 percent tariff becomes a lasting solution or a temporary easing remains to be seen, but the events of 2025 have left a lasting mark on how Swiss watches reach the United States — and how they are priced once they arrive.