How U.S. Tariffs Are Reshaping the Global Watch Industry

The luxury watch world has long revolved around Switzerland, with iconic brands dominating the high-end market and the U.S. serving as one of their most important destinations. But in 2025, sweeping U.S. tariffs on imports have shaken the foundations of the industry. Swiss giants like Rolex, Swatch Group, and Richemont now face steep new costs, while Japanese and European makers feel a milder sting. American companies, meanwhile, find themselves caught in the crossfire—forced to pay more for imported parts or pivot toward markets less affected. The ripple effects are already being felt in pricing, supply chains, and consumer behavior.

The Tariff Landscape

Under the 2025 “reciprocal tariff” policy, the U.S. imposed sharp new duties on imported goods:

Switzerland: 39% surcharge (the harshest hit).
Japan & most of the EU (e.g., Germany): Around 15%.
India: 25%.
Most other countries (e.g., China, South Korea, Vietnam): 10–20%.

For the watch sector, this means Switzerland—the heart of luxury timepiece manufacturing—faces the most damaging blow, while other exporting nations carry more modest burdens.

Switzerland faces the steepest U.S. tariffs on watches at 39%, compared to much lower rates for Japan, Germany, and Asian mass-market producers.

Before tariffs, over half of U.S. watch imports came from Switzerland—highlighting why the new duties hit the Swiss industry hardest.

Swiss Watchmakers: The Clear Losers

Switzerland exports more watches to the U.S. than any other country, making America its single largest market. With tariffs now at 39%, Swiss brands are in crisis mode.

Price shock: A $10,000 Swiss watch could now cost thousands more in the U.S. due to duties alone.
Front-loading shipments: Export data showed Swiss watch shipments to the U.S. spiked before the tariffs took effect, as retailers stocked up.
Price hikes: Brands like Swatch Group have already raised U.S. prices to offset costs.
Little room to maneuver: “Swiss Made” laws require most production to stay in Switzerland, making it nearly impossible to avoid the tariffs through offshoring.

The result? Slower U.S. sales, squeezed profit margins, and growing reliance on Asia and the Middle East to make up for lost business.

European and Japanese Watchmakers: Moderate Pain

Europe (outside Switzerland): German and French brands face tariffs closer to 15%. While still painful, this is far less dramatic than Switzerland’s 39%. German luxury makers like A. Lange & Söhne or French houses with watch divisions may even benefit slightly by being cheaper alternatives to Swiss rivals.
Japan: Companies like Seiko, Citizen, and Grand Seiko will pay about 15% in tariffs. Luxury lines will see modest price hikes, but far less than Swiss competitors. This may position Japanese watches as the best “value” option in the high-end segment for U.S. consumers.

American Companies: Stuck in the Middle

The U.S. doesn’t have a large-scale domestic watchmaking industry. Most so-called American brands rely on imported parts or fully assembled watches.

Shinola (Detroit): Assembles watches in the U.S. but relies on Swiss-made movements, meaning the 39% tariff still applies.
Movado, Invicta, and others: Many import Swiss or Japanese components and will see costs rise.
Fossil, Timex, and tech players (Apple, Fitbit): These brands manufacture largely in Asia, where tariffs are only 10%. They’re relatively insulated and may gain share as consumers look for more affordable options.

Retailers in the U.S. also bear the brunt. Authorized dealers must either absorb some of the higher import costs or pass them to customers. Meanwhile, pre-owned watch dealers may actually benefit, since tariffs don’t apply to resale markets.

Company-by-Company Impact

Company / Group	Main Brands	Production Base	Tariff Rate	Impact Level	Notes
Swatch Group	Omega, Longines, Tissot, Breguet	Switzerland	39%	Severe	Raised U.S. prices ~5%; heavy reliance on U.S. exports.
Richemont	Cartier, IWC, Vacheron, Piaget	Switzerland	39%	Severe	One of the hardest hit; U.S. is a key market.
Rolex (private)	Rolex, Tudor	Switzerland	39%	Severe	High U.S. demand; tariffs make iconic models far pricier.
LVMH	TAG Heuer, Zenith, Hublot	Mostly Switzerland	39%	Severe	Watches division a smaller share of LVMH overall.
Kering	Ulysse Nardin, Girard-Perregaux	Switzerland	39%	Severe	Smaller portfolio, but exposed.
Japanese Groups	Seiko, Citizen, Casio	Japan	15%	Moderate	May benefit as “lower cost” alternative to Swiss.
German Brands	A. Lange & Söhne, Nomos	Germany (EU)	~15%	Moderate	Positioned as cheaper luxury relative to Swiss rivals.
Shinola	Shinola (Detroit)	Swiss movements	39% (parts)	Moderate–High	U.S. assembly but dependent on Swiss parts.
Movado Group (U.S.)	Movado, Concord	Swiss/Japan	39% / 15%	Moderate–High	Imports movements; margins pressured.
Fossil Group (U.S.)	Fossil, Skagen, Michael Kors	China/Vietnam	~10%	Low	Affordable fashion watches remain competitive.
Timex (U.S.)	Timex	Asia (Philippines/China)	~10%	Low	Entry-level market shielded.
Apple / Fitbit	Apple Watch, Fitbit	China/Vietnam	~10%	Low	Smartwatches largely unaffected; could gain share.

Who Benefits?

While no major U.S. company directly wins from the tariffs, a few groups stand to gain indirectly:

Smartwatches: Apple and Fitbit avoid the steep duties facing luxury Swiss brands, giving them a price advantage.
Asian-made mass-market watches: Still affordable at only 10% tariffs.
Pre-owned market: Collectors and resellers of luxury Swiss watches may see higher demand as buyers avoid tariff-inflated retail prices.

The new tariff regime is reshaping the watch industry in profound ways. Switzerland, home to the world’s most prestigious brands, has been hit the hardest. Japan and Europe face moderate headwinds, while American companies reliant on imported parts struggle to adapt. Meanwhile, smartwatches and secondhand dealers quietly reap the benefits of a policy that was never really designed with the watch industry in mind.

In the end, U.S. tariffs are less about protecting American watchmaking—which barely exists—and more about reshuffling global competition. The luxury timepiece market, long dominated by Switzerland, may now see its strongest challengers come from places once considered second-tier players.

Sources

U.S. government tariff schedules (2025)
Federation of the Swiss Watch Industry export data
Reuters, Business Insider, and industry trade reports on Swiss and Japanese watchmakers
Company disclosures from Swatch Group, LVMH, Seiko, Richemont, and Shinola
Analyst commentary from JPMorgan and market research firms