Swiss watchmakers are feeling the pinch as President Donald Trump’s import taxes take effect. With tariffs of up to 39% on their exports, the industry is facing significant challenges.
The US is a major market for luxury watches, and Switzerland is no longer immune from the impact. Watchmakers such as Rolex, Cartier, and Omega are among those affected by the high tariffs.
Tim Mancuso, known as “Philadelphia’s Horology Kingpin,” and his partner Andrew Morgan are working closely with watch brands to find solutions. They believe that sharing the cost across several shoulders – between manufacturers, retailers, and customers – is key.
The industry’s response to the tariffs is mixed. Some watchmakers are exploring alternative markets, while others are adapting their business models to include more experiential marketing.
As for who buys these luxury watches, it tends to be entrepreneurs and professionals with a high disposable income. The watches serve as status symbols, and collectors often display them proudly.
With the US market shrinking, Swiss watchmakers may need to consider shifting sales to other countries. However, this will likely take years and come with significant costs.
Morgan: “Swiss Made is a legally protected label. We promote it with watch gatherings, watch parties, collector events… We keep it real.”
Mancuso: “The U.S. is 30% to 35% of the world’s watch market. China had a huge luxury market, but it has turned down since COVID.”
Source: https://www.inquirer.com/business/trump-tariffs-swiss-watches-omega-rolex-philadelphia-dealers-20250812.html