Rolex to Hike U.S. Prices by 3% Starting May 1
After Swatch Group, world's top watch brand reacts to tariffs, currency pressures and rising gold costs
Last week, we analyzed the complex situation in the watch industry: on one hand, export data remained promising, thanks to the strogness of the U.S. market offsetting steady Chinese declines; on the other hand, macroeconomic instability was beginning to seriously threaten the stability of the industry, especially following the imposition of new tariffs by the Trump administration.
On April 5, the Trump administration announced a 31% tariff on all imports from Switzerland, triggering panic in financial markets. The measure was later scaled back to a more “moderate” 10%, which is in effect today, but the domino effect had already been triggered: the dollar weakened rapidly, the Swiss franc appreciated, and the price of gold surpassed USD 3,300 an ounce, further exacerbating costs for producers.
In response to this scenario, after some weeks of waiting, Rolex has made official a +3% average price increase in the United States, effective May 1.
The decision, follows the price increase announced by the Swatch Group (+7/10%) and confirms how, despite the centrality of the U.S. market, managing margins has become increasingly complex for Swiss brands.
Three threats behind Rolex's choice
The list price increase by Rolex is the combined result of three main threats :
Trade tariffs: the new 10% tariff on Swiss watches imported into the United States, the result of Trump's protectionist policy.
Unfavorable exchange rate: the dollar has lost about 8% against the Swiss franc in less than a month, reducing the profitability of dollar sales.
Rising raw material prices: the price of gold has risen more than 20% since the beginning of the year, with direct impacts on the production costs of precious material models.
Rolex had already adjusted the prices of its gold models in January, but the combined pressure of tariffs, exchange rates, and raw materials has now made a generalized adjustment across the entire collection inevitable.
The Importance of the US Market
With exports to the United States amounting to about CHF 4.4 billion in 2024, America is the first market for Swiss wachmaking, and for Rolex in particular, the undisputed leader in volume and value.
For this reason, the interventions of the crowned maison and Swatch Group may not remain isolated.
In the coming months, similar adjustments can be expected from other industry biggies such as Richemont and LVMH, which have been more cautious so far.
If the CHF/USD exchange rate continues to penalize exports, gold continues to rise and if trade talks in Washington do not result in a quick agreement, new price increases may become inevitable.
