Retail Prices in the US Might Skyrocket
Let’s start with the obvious. This is a huge hit to retail pricing, especially for brands that do serious volume in the United States. Besides Rolex, Patek Philippe and Audemars Piguet, this list also includes some smaller brands like Omega, Longines, TAG Heuer, Tudor and Breitling. Their core buyers do care about price, and those buyers will start looking elsewhere. Maybe this could mean a win for the Japanese watch brands like
The new 39% import tariff simply means that a watch that previously had a sticker price of $10,000 will now be sold for around $13,900. That’s an additional AED 14,000 spent on a watch that was earlier sold for around AED 36,700.
With all this, you are looking at retail prices rising 20–35% almost overnight, depending on how brands decide to absorb or pass on the cost. Some brands might decide to kill some of their margins but even then, the consumers will defeinetly notice the impact.
What about the UAE?
Since the tariff is on Swiss watches that are imported to the US, will it really have any impact on the UAE market? Well, the UAE is a hub for international buyers and it is a major market for luxury Swiss watches.
In the short term, we might see a spike in demand for watches from the people who are travelling from the US to the UAE. The thing is, they might get away by buying a regular Omega Seamaster from the Dubai retail store for cheaper than the US, but what about the secondary market? When they will look towards buying Rolexes and AP watches, they will still have to pay a premium which might be lower than the US initially. But with the increasing demand and already low supply, we might even see a surge in prices in the secondary market here in Dubai.
On the positive note, some Swiss brands might start reallocating inventory to stronger markets like the Middle East and Asia to offset US losses. This means we might get priority access to newer models, but only temporarily, until supply chains stabilize.
Also Read – Safeguarding Your Watches in Dubai’s Scorching Summer: A Complete Guide
Secondary Market will Thrive
The tariff only applies to new imports to the US. But the pre-owned watches already in the U.S. remain untouched. That gives the secondary market a big edge overnight.
We might see secondary market prices climb, but not at the same rate as new retail. Why? Because the value gap between new and used just widened. If you can pick up a mint-condition Omega Speedmaster for $6,500 instead of paying $9,000+ retail post-tariff, that’s a no-brainer for many buyers.
Not just used watches, but the ones that are unworn, will now be available for much cheaper than retail. Even the premium on some of the popular models will not really hit as much to new buyers, which means they will not hesitate to pay a small premium to get the watch quickly.
