Gen Z has become a major force in the luxury Swiss watch market, but a new 39% US tariff on Swiss imports may reshape how young Americans buy, reports Forbes. While top brands like Rolex and Patek Philippe may retain demand due to their strong social status appeal, price-sensitive buyers are expected to turn to pre-owned or grey-market options to avoid higher prices. Experts predict increased overseas purchases and shifts in global distribution, but the cultural allure of luxury watches among younger consumers is likely to endure, just with changing buying habits. They write:
Gen Z’s fascination with luxury watches has been one of the more surprising consumer trends of the last few years. But a steep tariff hike on Switzerland could threaten its market: American youth.
Gen Z—alongside younger millennials—have embraced luxury timepieces as status symbols, posting them on TikTok and Instagram and helping reshape an industry long dominated by older collectors. A recent BCG survey found 54% of Gen Z respondents had increased their spending on luxury watches since 2021, and Sotheby’s estimated nearly a third of its watch sales in 2023 went to buyers 30 and under. […]
All said, the tariff probably won’t kill Gen Z’s fascination with luxury watches—but it could redraw the roadmap for how and where they buy them.
The social media posts of vintage Daytonas and Nautiluses are unlikely to disappear. What may change is that, for many young Americans, the product may increasingly be secondhand, and possibly stamped by a boutique in Paris or Milan.
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