Business News: Omega CEO And Other Top Watch Industry Executives Say Tariff Uncertainty May Delay Purchases By Some Consumers

The economic uncertainty created by dramatic shifts in U.S. trade policy, including tariffs on Swiss watches, could cause consumers to delay purchasing high-end timepieces, the Chief Executive Officer of Omega says. “The world was shaken,” by the tariffs, Raynald Aeschlimann said in Biel at an event to highlight Omega’s 60-year anniversary since winning NASA qualification for the Speedmaster model to be issued to astronauts on manned space flights and become the first watch worn on the moon.

“Shaken because there’s uncertainty about what’s going to happen with the economy, what’s going to happen with everybody’s development, and that’s something that doesn’t help us to create this shopping moment,” Aeschlimann said.

In response to U.S. tariffs that currently stand at 10%, as well as the rise in the value of the Swiss franc against the dollar since the surprise April announcement, Omega increased prices in some markets on May 1 including a rise of 5% in the U.S. Several other brands including top seller Rolex have also raised U.S. prices following the tariffs.

The initial 31% tariff on Swiss goods announced in April by the Trump administration was paused for 90 days after equity and bond markets swooned on the news. Trade officials from nations impacted by the tariffs are now working to strike new trade deals while a 10% levy remains in place. The Omega CEO said he is concerned that if high tariff levels continue, the brand may have to push prices further and move beyond its current $7,500 average selling price.

This is a big year for Omega as the brand is marking the 1965 anniversary of the Speedmaster being certified by NASA for space missions and besting rival brands, including Rolex and Longines. 

Omega is one of the five largest Swiss watch brands by sales, financial analysts estimate, and accounted for about one-third of sales from brands owned by Swatch Group AG in 2024, according to estimates by Switzerland’s Vontobel.

Some consumers will reflexively become protective and reconsider buying a watch until there is more clarity on the economic impact of the policy shifts, Aeschlimann said. Regardless of those challenges, Omega will mark the anniversary with promotions and new models highlighting the brand’s long association with space exploration.

“We’re going into it, we’re creating, we’re going to spend money, we’re going to do events, and we’re launching new products,” he said. Aeschlimann wouldn’t say if Omega would unveil a new Snoopy Speedmaster model this year to mark the NASA certification. 

It’s been five years since Omega introduced a new version of the Peanuts character-themed timepiece that remains a top seller and difficult-to-acquire watch for consumers. Golfer Rory McIlroy wore a Silver Snoopy Award Speedmaster after winning the Masters golf tournament this year and completing a career grand slam.

The Omega CEO’s statements about shaken consumer sentiment follow similar comments made by other top Swiss watch executives. Ilaria Resta, the Chief Executive Officer of Audemars Piguet told an online conference held by IMD in Switzerland last month that the independent Swiss brand, which is marking its 150th anniversary in 2025, remained bullish on the long-term growth prospects of the luxury watch sector, but that the uncertainty caused by the changes in U.S. trade policy were making consumers hesitant in the short-term.

“People about to buy a significant item like a watch or a car, they are in standby mode,” Resta said.

An Audemars Piguet spokesperson confirmed the independent watchmaker had “implemented selective price adjustments in the U.S.,” after the changes in trade policy and the price of gold jumped to record highs.

“This decision was made in response to global trade developments and rising material costs. These updates are essential for us to continue delivering the highest standards of craftsmanship and service worldwide,” the AP spokesperson said. 

Meanwhile, executives at the major watch auction houses say they are also bracing to see if the uncertainty caused by the tariffs will impact prices and demand at the Geneva auctions this month. Antiquorum Managing Director and Watch Expert Julien Schaerer said about one-third of Antiquorum clients are based in the U.S. and that a 31% tariff on watches would be potentially devastating if it were to be implemented. “These political storms are happening every other day, so I’m not panicking until something is really decided for good,” Schaerer said.

For more information visit Omega, Audemars Piquet, and Antiquorum online. 

​Hodinkee 

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