(Photo credit: Rolex)
The U.S. luxury watch market is confronting a confluence of economic pressures that could push up the value of pre-owned Rolex watches.
A proposed 31% tariff on Swiss imports, including Rolex, is poised to increase the cost of new models, especially after Rolex already raised U.S. prices twice in the past year. This is compounded by a weakening U.S. dollar against the Swiss franc, which further drives up prices for American clients. Additionally, the price of gold has surged to record highs, surpassing $3,000 per ounce, impacting the cost of new gold-based watch models.
These factors are likely to drive consumers toward the secondary market, where pre-owned Rolex watches are more attractive not just for their relative affordability compared to MSRP, but also for their immediate availability.
(Source: FactSet)
While the full 31% tariff on Swiss products is unlikely to return after the 90-day pause announced by President Trump on Apr. 9, a reduced but still significant 10% tariff remains on the table and could become permanent. Adding to the pressure, the U.S. dollar has continued to weaken since tariffs were first announced amid economic uncertainties, pushing the CHF/USD exchange rate now close to a 13-year high.
Meanwhile, the pre-owned watch market has begun to stabilize, posting its strongest quarter in three years and the smallest decline since early 2022, according to the most recent Morgan Stanley and WatchCharts report.
Rolex’s secondary market is entering a new phase, less driven by hype than during the pandemic, but now backed by stronger global factors. Even if tariffs come down and gold or the Swiss franc plateau, luxury watch pricing is shifting. The market is adjusting, and pre-owned Rolex models are likely to benefit.