U.S. Tariff Increase May Elevate Rolex Prices by Approximately 40%

As of August 7, the United States enforces a 39% duty on imports from Switzerland.

Rolex

The White House has recently enacted an executive order instituting a 39% ad valorem duty on all imports from Switzerland, representing one of the most significant levies in President Trump’s reciprocal-tariff policy. The policy was implemented immediately after the expiration of a firm deadline for a bilateral trade agreement with Switzerland, with the administration citing a $38 billion U.S. goods-trade deficit as rationale. The 39% rate significantly surpasses the 15% tariffs accorded to countries such as the European Union, Japan, and South Korea, who had established preliminary agreements before to the August deadline.

Switzerland's renowned watch sector, which generated over $6 billion in exports to the U.S. last year, now confronts a pivotal juncture. Prominent watch manufacturers like Rolex have the dilemma of absorbing the increased costs or transferring them straight to American consumers, a choice that is already prompting some retail prices to rise by as much as 15%. Independent ateliers establishing their niche in the U.S. would experience significant pressure, potentially prompting collectors to gravitate towards pre-owned marketplaces and secondary-market releases to avoid the additional extra.

Effective August 7, 2025, this recent escalation extends the comprehensive tariff reform initiated by Trump in April, when he declared a baseline global rate of 10% and threatened a 31% duty on Switzerland should negotiations fail. By late July, the administration established a tiered framework: a 10% minimum on all imports, 15% for partners with negotiated agreements, and elevated taxes for nations with significant U.S. deficits. Under this framework, Canada has increased its tariff from 25% to 35% in a distinct directive addressing failings in drug-enforcement cooperation, while countries such as India (25%) and Syria (41%) now encounter heightened hurdles in numerous commercial partnerships.