Collective Horology, a Ventura, Calif., retailer of independent watches, sued the federal government on July 24, the day the newest US tariff took effect. It asked the Court of International Trade to declare the tariffs unlawful and bar the government from collecting them. It also requested that the government refund the duties importers pay, with interest, to Collective and a proposed class of importers. A panel of the court heard arguments on September 30 in the consolidated challenges to the tariffs, which include Collective's. It hasn't said when it will rule, and the duties remain in effect.
The newest rate on Swiss watches took effect July 24, the same day a temporary 10% surcharge expired. It is the fifth rate in fifteen months, after a high of 39% in August 2025.
Photo: Bonnie Kittle
Although the importer pays this tariff first, when a watch enters the country, Collective's complaint says the company must either absorb the cost or pass some of it on to customers through higher prices. Collective estimated the new tariff on three incoming shipments at about $8,280. The duty is charged on what the importer pays, which is generally below the price tag, and the July increase adds at most 2.5% of that amount, no more than a fifth of the 12.5% duty. If an importer passed every dollar on, the July increase would add less than $250 to a $10,000 watch. Any refunds the court orders would go to importers, not buyers.
How much of the duty reaches a price tag is up to brands and dealers, and it is one input among several. WatchPro, analyzing a leaked 2026 US catalog, said Rolex's January price increases, about 7% on average, reflected record gold prices, a weaker dollar and the tariff. Justin MacDowell, chief of staff at European Watch Company, said tariffs have pushed up manufacturers' suggested retail prices and, in turn, secondary-market prices. Crown & Caliber and European Watch Company, a secondary-market dealer, operate as separate businesses. Crown & Caliber is owned by European Watch Company and is not involved in watch sales.
Photo: Bence Balla Schottner
How a watch is built decides how much the July increase adds. Chapter 91, the section of US customs law governing watches, taxes them by their parts instead of as a single object. On a steel automatic with a steel bracelet and more than 17 jewels, the case and the bracelet carry percentage charges, the movement carries none, and a small flat charge applies to each watch. Before April 2025, a Swiss watch paid only that standard duty and no additional tariff. For illustration, say such a watch is declared at $5,000 at the border, with $1,000 of that in the case and $500 in the bracelet. Its standard duty is $92.53, so the 12.5% total of $625 is mostly tariff, and the July increase is about $32.
Precious-metal automatics with more than 17 jewels are a special case. The watch itself enters free and only the bracelet is charged, so the old 10% surcharge was effectively the whole bill, and these watches now pay 12.5%.
"This new system has resulted in increased total fees on many precious metal pieces," said MacDowell. Steel, however, is a different matter: "for steel watches it's close to a wash and can go either way, depending on how the value is split between components."
Where a watch is made changes the rate. The tariff follows the country of origin, not the country a watch ships from: Swiss- and Japan-made watches face a combined 12.5%, and European Union-made watches a combined 10%.
Photo: Alexis Presa
Whether the new rate applies depends on when a watch entered the country, which varies by where a buyer shops. A new watch from an authorized dealer carries a recommended retail price the brand sets, with duty as one input. A gray-market watch imported after July 24 pays the new rate, and one imported earlier paid the rate in effect when it entered. A pre-owned watch that entered the US before July 24 paid the rate in effect then, not the new one.
Quaid Walker, co-founder and CEO of Bezel, said that, whether novice or experienced, its buyers are not yet coming to the table with a tariff calculation. He said, alongside watch specs, "tariffs are increasingly becoming part of [the] equation, particularly for buyers comparing a watch imported from overseas with one that is already sitting domestically."
What to watch next: the court has not set a ruling date. The Federation of the Swiss Watch Industry reported that Swiss watch exports to the US rose 26.5% in July and fell 19.4% in August. Its figures track exports, not sales to customers, and September figures are due October 20. A separate investigation of sixteen economies, including Switzerland, could add duties.
