Understanding the US tariff reduction: what it means for Swiss watch buyers

Relief arrives, but challenges remain

On November 14, 2025, the United States and Switzerland announced a significant development for the luxury watch market: the US has cut import tariffs on goods from Switzerland from 39% to 15%. For watch enthusiasts and collectors who have watched prices climb dramatically since August, this represents meaningful relief—though the situation remains more complex than a simple return to normalcy.

According to Swiss Economics Minister Guy Parmelin, the new tariff rate will enter into force within 10-12 days, potentially taking effect before the end of November 2025. This timeline matters because every day represents additional cost savings for watches entering the American market.

The context: from crisis to cautious optimism

To understand the significance of this reduction, we must revisit the crisis that preceded it. In August 2025, the US imposed a 39% tariff on Swiss imports, and the impact was immediate and severe: exports of Swiss watches to the American market dropped by 55.6%, from CHF 355 million to CHF 158 million in September alone.

Last year, watches worth CHF 4.4 billion ($5.5 billion) were exported to the US, accounting for almost 17% of global Swiss watch exports. The 39% tariff threatened not just individual transactions but the fundamental relationship between Swiss manufactures and their largest market.

The announcement of the reduction stabilizes bilateral trade relations, according to Parmelin, though the overall tariff rate remains higher than before the additional tariffs were introduced in April. Before the tariff escalation, Swiss goods typically faced duties between 0% and 2.5%. The new 15% rate, while a significant improvement from 39%, still represents a substantial increase from historical norms.

What this means for watch pricing

The most immediate question for buyers concerns pricing: will watches become less expensive, and if so, when?

The answer is nuanced. These tariffs are applied on the import price of goods, not on the final retail price. For a watch with an import value of $10,000, the tariff reduction from 39% to 15% saves $2,400 in duties—a meaningful difference, but one that represents perhaps 15-20% of the final retail price after distribution margins, boutique markups, and sales taxes.

Different brands and retailers have handled the tariff situation using varying strategies: some absorbed costs to maintain stable pricing globally, others passed increases directly to American consumers, and still others pressured distribution partners to reduce margins. How each brand responds to the reduction will similarly vary based on these established approaches and their current inventory situations.

The timing complexity adds another dimension. Many brands anticipated the original tariffs and massively exported watches to their US-based subsidiaries in April and July 2025, drastically increasing inventories. These pre-tariff watches at 39% duty remain in circulation, meaning full pricing benefits from the 15% rate may not materialize immediately across all models and retailers.

Investment and collecting implications

For collectors considering acquisitions, several strategic factors emerge from this development:

• Pre-owned market dynamics: Paul Altieri, CEO of Bob's Watches, expects demand for pre-owned watches to spike as a result of the tariffs, noting "If the new watch market slows under the weight of tariffs, the pre-owned market may very well become the lifeboat". The tariff reduction may moderate this effect, but the certified pre-owned segment has already captured significant market share during the crisis period.

• Timing considerations: Watches currently in transit or in dealer inventory that were imported at 39% tariffs may see reduced pricing as dealers seek to remain competitive with newly imported pieces at 15%. However, limited-production models and high-demand references may maintain pricing regardless of tariff changes due to supply constraints.

• Long-term stability: According to Washington, the aim is to finalize the agreement by the first quarter of 2026. This extended timeline creates ongoing uncertainty—the 15% rate, while agreed upon, requires formal finalization. Collectors making significant purchases may want to consider whether contracts or agreements include provisions addressing potential further tariff changes.

The Swiss investment commitment

The tariff reduction didn't come without conditions. Swiss companies are planning to carry out direct investments in the US worth $200 billion by the end of 2028, with these investments extending across all 50 states over the next five years to create manufacturing and research and development jobs.

For the watch industry specifically, this could mean increased American operations from Swiss brands—potentially manufacturing certain components domestically, expanding service centers, or establishing technical training facilities. While Swiss mechanical watchmaking's core will remain in Switzerland, this investment commitment may reshape how brands structure their American presence.

Global market context

The US tariff situation doesn't exist in isolation. China and Hong Kong dropped respectively by 25.8% and 18.7% in 2024 compared to the previous year, creating additional pressure on manufactures. The American market's importance has only grown as Asian markets contract.

However, not all regions face challenges. India continues to boom with a 7% increase in exports, and Mexico is establishing itself as a new center in Latin America with exports of CHF 337 million last year. The watch industry is diversifying its geographic dependence, reducing vulnerability to any single market's fluctuations.

What watch buyers should know now

For those considering luxury watch purchases in the coming weeks and months, several practical recommendations emerge:

• Exercise patience with pricing: Retail prices may not adjust immediately or uniformly. Brands require time to implement new pricing structures, and dealers need to clear existing inventory before full benefits materialize. Expect pricing adjustments to roll out gradually through early 2026.

• Verify import timing: When purchasing, inquire whether specific pieces were imported before or after tariff changes. This transparency helps ensure fair pricing relative to the dealer's actual costs.

• Consider pre-owned alternatives: The certified pre-owned market expanded significantly during the tariff crisis and now offers compelling value propositions, particularly for discontinued references or vintage pieces unaffected by import duties.

• Monitor brand announcements: Major manufactures will likely issue official communications about pricing adjustments in response to the tariff reduction. These announcements provide authoritative guidance about what to expect.

• Maintain long-term perspective: For collectors building meaningful collections, tariff fluctuations represent short-term volatility in fundamentally sound assets. Historical data shows quality timepieces from established manufactures maintain value across various economic conditions.

The road ahead

The US tariffs of 39% had already caused damage, as they affected 40% of exports, according to Minister Parmelin. While the reduction to 15% provides relief, the Swiss watch industry faces a changed landscape: heightened awareness of geopolitical risk, diversified market strategies, and evolved relationships between manufactures, distributors, and consumers.

The tariff situation has also accelerated existing trends: growth of the pre-owned market, importance of provenance and authentication, value of long-term relationships with authorized dealers, and recognition that watch collecting exists within broader economic and political contexts.

For Swiss watch dealers and collectors alike, the tariff reduction represents not an ending but a transition—from crisis to adaptation, from emergency measures to sustainable strategies. The American market remains vital for Swiss horology, and this agreement ensures that vital relationship continues, even if under changed conditions.

As the new 15% tariff rate takes effect in the coming days, the immediate future looks more stable than the recent past. Yet the experience has reminded all stakeholders that in luxury goods, as in geopolitics, assumptions of permanence can prove fragile. The collectors who thrive will be those who remain informed, flexible, and focused on enduring value rather than temporary fluctuations.

This article is based on official sources including the Swiss Federal Government, Federation of the Swiss Watch Industry, and international news services. Tariff situations remain subject to change. Consult with tax and customs professionals for specific import guidance.