Story Highlight
– Patek Philippe prices in the US increased by 15%.
– US tariffs on Swiss watches now average 41%.
– UK prices remain unchanged amid US price hikes.
– Americans may shop abroad due to price differentials.
– 40% of collectors express concern over rising watch prices.
Full Story
Prices for Patek Philippe watches in the United States have risen by approximately 15%, a change reflecting the impact of an additional 39% tariff imposed by President Trump on Swiss timepieces entering the country. This rise is shared among the Swiss watchmaker, its American business operations, retail partners, and customers.
Meanwhile, prices in the UK remain stable this morning.
This current adjustment marks the second increase linked to US tariff policies within a six-month period. In both instances, Patek Philippe’s American retailers have experienced squeezed margins for each watch sold. The previous rise in April, which added a 10% tariff, resulted in price increases of 5-10% for many Swiss brands across the States. With the latest hike, the total tariff on Swiss watches has reached an average of 41%, comprising an added 29% on top of the previously set tariffs.
Prior to the first tariff increase, the average tariff on Swiss watches was around 2%, based on the source of the watch’s parts from Switzerland. Following the introduction of the additional 10% tariff in April, the costs for US consumers have seen a significant upward trend, particularly now with the 29% tariff enforced since midnight on August 7.
As announced by WatchPro last week, Patek Philippe has raised its suggested retail prices by 15%, effective today. For instance, the price of a Patek Philippe Cubitus in gold has escalated from $80,346 to $92,496 in the US. When factoring in the average state sales tax of 7.7%, the total cost now amounts to $99,618. Conversely, in the UK, the same watch is available for £65,600, approximately $88,000 at the current exchange rate, potentially prompting American buyers to look overseas for their luxury purchases.
Should this price disparity persist, continental Europe may see a surge in American customers seeking luxury watches, particularly since tourists can reclaim 20% of sales tax unlike in the UK. Although a first-class round-trip flight from New York to Paris costs about $4,000, acquiring a Patek Philippe at their Place Vendôme Salon remains a challenge, as customers are required by law to declare any new purchases upon returning to the US or face strict penalties for non-compliance.
It has taken a month for retail prices to adjust following the introduction of the 41% tariff, as many retailers aimed to move existing inventory prior to the new tariffs taking effect. The Federation of the Swiss Watch Industry reported a 24% increase in the value of Swiss watch exports to the US from January to July. Brands like Patek Philippe, which manage quick-turn inventories and have long waiting lists, likely depleted excess stock quicker than those with a softer supply chain.
The consequences of rising prices raise concerns among both casual purchasers and dedicated collectors. A recent survey conducted by CollectorSphere, which comprises over 200 high-end collectors, found that 40% of respondents expressed worries regarding value depreciation and unwarranted pricing strategies.
This sentiment seems to resonate with the brands, as WatchPro’s research on a selection of approximately 40 watches from notable makers has shown no price increases for other luxury brands such as Rolex, Cartier, Breitling, IWC, Omega, TAG Heuer, Tissot, or Audemars Piguet since the announcement of the new tariff rates.
