Business News: Rolex Will Raise U.S. Prices In Response To Tariffs
Rolex, the top Swiss watch brand by sales, will raise prices in the U.S. next month in response to import tariffs. The Geneva-based company will increase prices at U.S. retailers by an average of 3% beginning May 1, people familiar with the matter said.
The U.S. market price hikes are in response to the 10% tariffs imposed by the Trump administration on most Swiss goods, including watches. The White House initially announced a 31% levy earlier this month but later paused the so-called ‘reciprocal tariffs’ on global trading partners for 90 days after bond and stock markets fell sharply on the news. A 10% tariff remains in place as Swiss trade officials seek to strike a trade agreement with their U.S. counterparts. A Rolex spokesperson in Geneva did not respond to a request for comment on the U.S. price increases.
The Rolex price increases are significant, as the U.S. is the biggest market for the brand. Rolex produces more than 1 million watches per year and is the top-selling Swiss marque in the U.S. by sales. Other Swiss brands, which in addition to the tariff costs are also suffering due to the appreciation of the Swiss franc against the U.S. dollar and rising input costs from a record surge in the gold price, are expected to follow suit.
Omega, the maker of Speedmaster and Seamaster models, is expected to raise prices by an average of 5% beginning May 1, the people familiar with the matter said. Omega is one of the five biggest Swiss brands by sales, according to analysts at Vontobel.
The Omega price rise comes after parent company Swatch Group AG, whose other brands include Blancpain and Glashutte Original, confirmed last week it was raising prices between 8% and 10% for some brands in response to the tariffs and the strengthening franc against a weak U.S. dollar.
Stay tuned to Hodinkee for more on this developing story.
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