Rolex and Other Luxury Brands Respond to Tariff Pressures with U.S. Price Hike Amid Shifting Trade Landscape

In response to newly imposed U.S. tariffs on Swiss imports, Rolex is set to increase its prices in the American market. Starting May 1, 2025, the Geneva-based watchmaker plans to raise prices at U.S. retailers by an average of 3%.

This adjustment comes after the U.S. government implemented a 10% tariff on most Swiss goods, including luxury watches. Initially, a 31% tariff was announced but was later paused for 90 days following market volatility. However, the 10% tariff remains in effect as trade negotiations continue between Swiss and U.S. officials .

Rolex produces over a million watches annually and is the top-selling Swiss watch brand in the U.S., making the American market particularly significant for the company. The price increase may be seen as a necessary step to offset the additional costs imposed by the tariffs.​

Other Swiss watchmakers are also feeling the impact. Omega, for instance, is expected to raise its U.S. prices by an average of 5% starting May 1. Parent company Swatch Group AG has confirmed price hikes between 8% and 10% for some of its brands, citing not only the tariffs but also the strengthening Swiss franc against a weaker U.S. dollar and rising input costs due to a surge in gold prices.

The luxury watch industry is closely monitoring these developments, as the U.S. remains a crucial market. The big question is whether these price adjustments may influence consumer behavior and potentially affect sales dynamics in the luxury watch segment.​ The next few months will surely be closely monitored by the entire industry.