Industry News: Watches of Switzerland Rallies As Tariff Fears Ease (For Now)
The UK’s biggest Rolex dealer gets a bounce as brands play the waiting game with US import duties

Shares in Watches of Switzerland, the UK’s largest Rolex retailer, climbed sharply on Tuesday after the company struck a reassuring tone on the impact of new US tariffs, easing concerns that had been weighing heavily on the stock. The group said that trading in the first half of its financial year was in line with expectations, with strong demand continuing in the United States and steady sales in the UK, and that the newly imposed 39 per cent levy on Swiss watch imports would not materially affect its results through October. Interesting statement, but the question remains what happens after October…

The announcement sent the stock as much as 11 per cent higher in early London trading before settling around 7 per cent up by mid-morning. The relief stems largely from timing. In recent months, many Swiss brands front-loaded inventory into the US market ahead of the tariff deadline, ensuring that retailers such as Watches of Switzerland can continue to operate on existing stock without immediately absorbing higher costs. Swiss export data underline this strategy, as widely reported here previously on DE GRIFFR the past weeks and months.

Executives at Watches of Switzerland acknowledged as much, emphasising that while the near-term outlook is stable, the industry cannot indefinitely absorb a levy of this magnitude. Once the pre-shipped stock begins to run down, the sector will have to make hard choices: accept lower margins, pass costs along to retailers, or implement price rises that could affect consumers worldwide. In that sense, today’s reassurance is less a cure than a stay of execution.

Luxury watch demand has already softened after several years of post-pandemic exuberance, and the threat of prolonged tariffs adds a (substantial) layer of uncertainty. Even markets outside the United States may not be spared, as global price lists are often adjusted in unison to preserve parity. If you need a visual explanation, make sure to watch this video on the Tariff impact on the watch industry.