39% Tariffs Are Now Active for Switzerland

Every Swiss-made luxury watch — new or preowned, no matter the port of origin — is now subject to 39% tariffs.

It was about 11% since April. Now it’s nearly 4x higher.

Jewelers have been preparing for this for months. Over the past 30 days, we’ve seen Jewelers hoarding inventory…buying heavily with little reselling

If you’ve followed my content, none of this should be a surprise. I’ve been talking about tariffs and their ripple effects for months.

So what happens next?

Expect a price rally

Jewelers know how to manipulate scarcity. Expect MSRP hikes — I’m calling at least 12%. And if you’re on a waitlist at your AD? Not only will it cost more, but the allocation will likely be even tighter.

This will also drive up prices in the secondary market quickly.

And expect a shift in demand

During COVID, cheap money and hype brought new buyers into the market. Many didn’t understand the cycles — they bought everything.

Today, money isn’t as loose. When prices jump, casual buyers will pause instead of piling in.

This won’t crash prices. Just like new construction in real estate or rising auto prices, we’ll see prices rise and stabilize, demand slow and prices holding firm. 

The real question: How long will this last?

That’s what I’ll break down next week — including my predictions for the holiday season.