Luxury watches today are far more than precious timepieces; they have become powerful symbols of status, success, and personal achievement. For many, wearing one is a form of validation, a statement piece that often reveals more about what the wearer wants the watch to say about them than how the wearer actually feels about themselves.
Now, with President Donald Trump’s recent decision to slash U.S. tariffs on Swiss imports, that coveted symbol of wealth may soon become more attainable for American buyers.
On November 14, the Trump administration reached a trade agreement with Switzerland that lowers U.S. tariffs on Swiss goods from 39% to no higher than 15%. The deal is intended to open access for U.S. exports and strengthen national and economic security, according to a White House announcement.
As part of this reciprocal pact, Swiss companies have pledged to invest at least $200 billion in the U.S., with a minimum of $67 billion worth of investment expected in 2026, funding that the administration says will create jobs across multiple industries. Switzerland also agreed to eliminate its tariffs in the agricultural and industrial sectors.
“Today’s US-Swiss trade framework announcement could be good news,” said Senior Economist Ryan Young. “But it would be substantially better if it included broad mutual recognition and if it could serve as a model for future agreements.”
Although this might seem like a step forward in the ongoing trade battle between the U.S. government and the rest of the world to some, the agreement has drawn criticism from those who argue the decision favors corporate interests over the American public, especially at a time when rising prices across multiple industries have strained household budgets.
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Rolex raises luxury watch prices amid tariff pressures
Swiss luxury watchmakers have not been immune to the tariff pressures. In 2025 alone, Rolex raised prices twice, first in January by around 1% on most steel models and roughly 5% on two-tone models, with even higher increases on full-gold pieces. In May, the company bumped prices again by approximately 3% across the board, according to Men’s Journal.
Before the trade deal, industry analysts estimated that Swiss luxury watches could rise an additional 12% to 22% if brands fully pass tariff costs along to consumers, and many already have. So far, renowned brands such as Rolex, Patek Philippe, and Audemars Piguet have all implemented price hikes this year.
“Once current stock is sold, all new arrivals will carry the increased cost. Buyers who wait could easily pay thousands more for the exact same watch in a matter of months,” warned JD Watches E-commerce Specialist Tejas Solapurkar in August.
2025 U.S. luxury watches price increases and production
- Rolex: Two price hikes of 1% and 5%, with an expected production of 1.2 million units.
- Patek Philippe: 15% price increase, with an expected production of 72,000 units.
- Audemars Piguet: 5.5% average price surge, with an expected production of 51,000 units.
(Price increases and production unit estimates were obtained from: Business of Fashion & Watches Off 5th)
Criticism mounts over Trump’s tariff-cutting decision
The controversy surrounding Trump’s decision stems from the administration’s earlier move on August 7, when it imposed a 39% tariff on Swiss imports, nearly two-and-a-half times the rate applied to goods from nearby EU countries.
Only weeks after the tariff took effect, Rolex invited Trump to attend the U.S. Open Tennis Championship in September and also gifted him a golden table clock, according to GQ. The suspicious timing raised immediate concerns for some.
In a letter dated September 24, U.S. Senator Elizabeth Warren questioned Rolex CEO Jean-Frédéric Dufour about the company’s intentions.
“Given the President’s record of doling out special treatment to CEOs who are able to woo him with flattery, payoffs, or both, the timing of his attendance at the match in the Rolex box is concerning,” wrote Warren. “I have questions about whether you are attempting to curry favor with the President in an effort to secure special-interest exemptions for Rolex products.”
Warren argued that Trump has signaled a willingness to grant tariff and trade rule exemptions to corporations willing to pay, citing two major examples: Apple CEO Tim Cook, who donated $1 million to Trump’s inauguration, received a tariff exemption, while Nvidia CEO Jensen Huang ostensibly secured permission to export the company’s latest chips after purchasing a $1 million table at Mar-A-Lago.
Rolex denies the alarming allegations
Responding to Warren, Dufour admitted in a letter that at the event, Trump jokingly asked Rolex executives if he would have been invited to watch the U.S. Open final from Rolex’s VIP box if it weren’t for the tariffs.
“President Trump, never one to miss a rhetorical opportunity, did ask in jest whether he would have been invited had it not been for the tariffs — a moment that brought a round of laughter all around and, as you can imagine, a swift return of attention to the unfolding excitement on court,” wrote Dufour in the letter.
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Warren rejected the lighthearted characterization, stating that “Corruption is not a laughing matter.” She emphasized that while American families struggle with fallout of tariff policy, “Donald Trump and his rich friends are laughing about tariffs in a fancy box sponsored by a luxury watch brand.”
Dufour denied any improper conduct or tariff-related discussions, stating that trade negotiations are handled strictly between the U.S. and Swiss governments. He also noted that Rolex has faced the same tariff impact as any other Swiss manufacturer without exemption.
“It is a conviction that sport offers a powerful way to bring people together across backgrounds, beliefs, and national borders. We are committed to upholding these values, and to ensuring our engagements remain nonpartisan and grounded in mutual respect,” wrote Dufour in a letter.
Will Swiss watch prices fall in 2025?
Although the tariff cut reduces costs for Swiss watch manufacturers by around 24%, experts say this doesn’t guarantee lower retail prices, but it does help prevent the steeper increases that the tariff rate would have caused.
“Lowering the tariffs from 39% to 15% will avoid the price increases that would have become necessary to absorb the tariffs,” said Luxeconsult founder Oliver R. Müller to JCK. “[The 39% tariff] would have meant a 12–14% increase at retail, which is far from being marginal.”
Müller noted that at the new 15% rate, most manufacturers have already priced in the added cost, which should stabilize pricing moving forward.
Before the agreement was made, however, Switzerland had already lowered its outlook for 2026 due to U.S. tariff pressures.
“Higher U.S. tariffs have further clouded the outlook for the Swiss economy,” said the Federal Office of Public Health in a statement. “The Expert Group on Business Cycles projects significantly below-average economic growth of 1.3% in 2025, slowing further to 0.9% in 2026.”
Related: When you’ll see empty retail store shelves due to tariffs
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