Tariffs, Timepieces, and Trade: How New U.S. Duties Are Reshaping Watchmaking
The U.S. has thrown a wrench into the gears of global watchmaking. With new tariffs imposed on watches and components from Switzerland, Germany (EU), and Japan, the finely tuned economics of timepiece production are shifting rapidly. Here’s a breakdown of what’s happening, who’s most exposed, and which American players could benefit.
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What Changed?
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Switzerland: A hefty 39% tariff now applies to Swiss imports—including watches and components—as of August 7, 2025.
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European Union (Germany included): The U.S.–EU deal settled tariffs in the 12–16% range, still meaningful but far below Switzerland’s.
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Japan: Japanese goods, including complete watches and movements, face rates around 15% post-deal.
Customs note: For duties, the key factor is country of origin. A U.S. microbrand casing a Japanese movement still pays Japan’s rate unless assembly qualifies as “substantial transformation.”
Who’s Most Affected?
Switzerland (39%)
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Rolex, Tudor, Patek Philippe, Audemars Piguet
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Swatch Group (Omega, Longines, Tissot, Breguet, Blancpain, Rado, Hamilton, etc.)
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Richemont (Cartier, IWC, Panerai, Vacheron Constantin, Jaeger-LeCoultre)
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LVMH (TAG Heuer, Hublot, Zenith)
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Independent maisons (F.P. Journe, Oris, Parmigiani, etc.)
Swiss luxury is the bullseye here. With 39% tariffs, price increases are expected across U.S. retailers, some already signaling double-digit hikes.
Germany / EU (12–16%)
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A. Lange & Söhne (Richemont)
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NOMOS Glashütte, Sinn, Junghans, Glashütte Original (Swatch Group)
German brands face smaller—but still impactful—tariffs that erode U.S. margins, especially in competitive mid-tier segments.
Japan (~15%)
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Seiko & Grand Seiko
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Citizen (Miyota)
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Casio (G-Shock)
This also hits microbrands relying on Japanese movements like Seiko’s NH35 or Miyota’s 9000-series. Those movements become costlier imports under the new rates.
Supply Chain Ripple Effects
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Movements: Microbrands that once leaned on affordable Swiss or Japanese movements will see significant cost hikes.
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Components: EU-made cases, dials, and hands are now pricier under mid-teen tariffs.
Gray Market Growth: Expect sharper U.S.–overseas price gaps on Swiss watches, encouraging parallel imports and international buying trips.
Which Companies Are Most Exposed?
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Swiss luxury conglomerates: Rolex, Swatch Group, Richemont, LVMH. Swatch has already flagged tariff pressures.
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Independent Swiss houses: Smaller scale, less ability to absorb costs.
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German brands: NOMOS, Sinn, Junghans, A. Lange & Söhne.
Japanese majors: Seiko, Citizen/Miyota, Casio—especially with their strong U.S. microbrand supply business.
American Companies That Could Benefit
While few U.S. watchmakers are totally insulated, some could gain a relative advantage as Swiss and Japanese imports get pricier.
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RGM Watch Co. (PA): Builds some in-house U.S. movements, a rarity stateside.
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Weiss Watch Co. (CA): U.S. machining and assembly; still imports some Swiss parts.
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Shinola (Detroit): U.S. assembly with imported components; potential to pivot toward non-Swiss sourcing.
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Microbrands with Japanese movements: Even with tariffs, Japan’s ~15% is far more favorable than Switzerland’s 39%.
Fashion groups (Fossil, MVMT, etc.): Less tied to Swiss luxury, better positioned in entry-level pricing.
What Happens Next?
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Price Increases: Expect low-to-mid-teens hikes on U.S. Swiss watch prices through 2025–26.
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Shift in Demand: Consumers may trade down to German, Japanese, or U.S.-assembled options.
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Inventory Maneuvers: Brands will lean on pre-tariff stock, stagger U.S. allocations, and carefully raise prices. Swatch has already discussed such strategies.
Re-sourcing: U.S. assemblers may rethink their reliance on Swiss or Japanese movements, exploring more domestic production.
The luxury watch industry has always been global, but tariffs are drawing new borders. Swiss brands are hit hardest, German and Japanese watchmakers face meaningful but smaller hurdles, and U.S. brands with domestic value-add could see new opportunities. For American buyers, this likely means higher prices on their favorite Swiss classics—and a growing appeal in German, Japanese, and even American-made alternatives.
