Gen Z was growing obsessed with luxury watches. New tariffs on Switzerland could cool the expensive hobby

Retail·Tariffs and tradeEuropeGen Z was growing obsessed with luxury watches

But experts tell Fortune top watchmakers Rolex and Patek Philippe may not see much of a demand shift as young luxury watch buyers crave the social currency that comes with the brands

Gen Z’s fascination with luxury watches has been one of the more surprising consumer trends of the last few years

But a steep tariff hike on Switzerland could threaten its market: American youth

Gen Z—alongside younger millennials—have embraced luxury timepieces as , posting them on TikTok and Instagram and helping reshape an industry long dominated by older collectors

The duty, imposed during President Donald Trump’s round of tariffs, hits the world’s most important market for Swiss watch exports

From January to June, the U.S. overtook Japan and China as the top destination, with $3.17 billion ( 2.56 billion Swiss Francs) worth shipped, according to the Federation of the Swiss Watch Industry. “Companies cannot realistically absorb the tariff, which means retail prices in the U.S. will rise sharply,” Marcus Altenburg, managing partner at Swiss law firm Goldblum & Partners, told Fortune

While the 39% levy applies to an importer’s cost, not full retail, industry analysts predict a 12%-14% increase in store prices if brands pass on the cost to consumers. “For many American collectors, the 39% tariff instantly turned new releases from Swiss brands into a luxury few can justify,” Joshua Ganjei, CEO of European Watch Company in Boston, told Fortune. “The pre‑owned market is now the best option for value and immediate availability—no import headaches and no sticker shock.” That shift to secondhand is already underway, since availability in the primary market is so limited, Bhatt said

Still, a 2024 report by Watchfinder & Co. found 41% of Gen Z aged 16 to 26 came into possession of a luxury watch the previous year—and individuals in this age bracket who are ready to buy a luxury timepiece said $10,870 would be the starting point for their next purchase

Altenburg expects Gen Z and millennial buyers, who tend to be more price‑sensitive than older collectors, to gravitate to domestic pre‑owned and grey‑market sellers to sidestep tariffs

Ganjei said his company has “seen a dramatic increase in purchasing volume over the past few months as U.S. buyers shy away from international sellers.” On the other hand, watchfluencer Bhatt said younger consumers still crave the “social currency” that comes with a Rolex, Patek Philippe, or Audemars Piguet, even if they pay more to get it. “They also understand the that it gives them,” Bhatt said

The social cachet of a Swiss-made watch plays out daily on social media platforms TikTok, Instagram, and influencer channels, boosting aspirational demand, he said

Bhatt doesn’t expect demand for the most coveted brands to vanish, but says mid‑tier Swiss names without top brand prestige could see sales slow

The added cost may also push Americans to buy while traveling in Europe—where they can sometimes reclaim value added tax (VAT)—and bring pieces back themselves, potentially avoiding tariffs altogether, Bhatt said. “It could be that allocation of pieces is shifted toward other territories over time,” he added, “because they see demand increase in Europe or the Middle East and diminish a bit in the U.S.” For the Swiss industry, the stakes go beyond sticker prices

Altenburg warned that sustained U.S. weakness could pressure employment and supply chains in watchmaking regions, while forcing brands to rethink distribution, pricing, and even corporate structures to blunt the tariff’s impact

Bhatt thinks marketing to younger generations will also matter more in a cooling market. “When the market’s high, they rely just on brand value and brand name,” he said. “When the market is low, they need people to understand the rarity and complexity and difficulty in ducing these rare watches.” All said, the tariff bably won’t kill Gen Z’s fascination with luxury watches—but it could redraw the roadmap for how and where they buy them

The social media posts of vintage Daytonas and Nautiluses are unly to disappear

What may change is that, for many young Americans, the duct may increasingly be secondhand, and possibly stamped by a boutique in Paris or Milan

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