Gen Z Was Growing Obsessed With Luxury Watches. New Tariffs on Switzerland Could Cool the Expensive Hobby

 

Luxury watches have long symbolized craftsmanship, heritage, and exclusivity. But in recent years, a surprising generation has been driving much of the growth: Gen Z. Born into a digital-first world, this cohort has embraced luxury watches as both a personal statement and a long-term investment. Yet, a sudden economic jolt in the form of steep tariffs on Swiss imports now threatens to disrupt their passion.

Gen Z and the Rise of Luxury Watch Culture

A Digital Generation Drawn to Analog Timepieces

For a generation accustomed to smartphones and smartwatches, Gen Z’s attraction to luxury timepieces may seem contradictory. But the appeal runs deeper than telling time. A Swiss-made watch is seen as a symbol of permanence in a disposable world, a physical asset that retains or even grows in value.

Social Media Influence

On TikTok, Instagram, and YouTube, watch culture has exploded. Influencers showcase Rolexes, Audemars Piguets, and even more affordable brands like Tissot and Oris, sparking aspirational desire. Viral videos about “investment watches” or “entry-level Swiss models” fuel curiosity among young buyers eager to signal taste and success.

Pre-Owned Market Boom

Gen Z is also leading the shift toward the pre-owned luxury market. Buying secondhand is not only more affordable but also aligns with their values of sustainability and individuality. Instead of owning the latest model, many young collectors prefer vintage or rare discontinued editions that carry unique stories.

Investment-Minded Consumption

Unlike previous generations that may have splurged purely for fashion, Gen Z views luxury watches as assets. Many believe that the right Rolex or Patek Philippe will hold value better than flashy tech gadgets. This financial perspective has turned watches into a hybrid purchase—part accessory, part portfolio diversification.

The Tariff Shock: A 39% Duty on Swiss Imports

In August 2025, the U.S. government imposed a sweeping 39% tariff on Swiss goods, far higher than those applied to other European countries. While chocolate, skincare, and coffee capsules were caught in the crossfire, it was watches that faced the steepest consumer impact.

A model retailing for $10,000 could now cost nearly $14,000. Mid-tier Swiss brands, already competing with Japanese and German watchmakers, suddenly risk becoming unattainable for cost-conscious buyers. Retailers rushed to import inventory before the tariffs took effect, but long-term strategies remain uncertain.

How Tariffs Threaten Gen Z’s Watch Obsession

1. Entry-Level Dreams Out of Reach

Many Gen Z buyers saved to buy their “first luxury watch” as a graduation or milestone gift to themselves. With tariffs inflating prices, these entry-level Swiss models may now feel unreachable, pushing some potential buyers out of the market entirely.

2. Pre-Owned Market Takes Center Stage

Tariffs on new imports are expected to supercharge the resale market. Gen Z, already comfortable with buying secondhand, will likely accelerate their shift toward certified pre-owned platforms and gray-market dealers. Vintage models may see sharp price increases as demand surges.

3. Brand Strategies Under Pressure

High-end brands like Rolex, Patek Philippe, and Audemars Piguet may choose to absorb part of the tariff or strategically increase U.S. retail prices. Their exclusivity means demand will hold. However, mid-tier brands such as Longines, Oris, and Tissot could struggle, as their value-for-money appeal weakens under tariff inflation.

4. Travel Purchases on the Rise

Another possible shift is luxury tourism. Gen Z buyers may increasingly look to purchase watches abroad, in countries unaffected by U.S. tariffs, turning international shopping trips into both experiences and savings strategies.

5. Cultural Shift in Watch Collecting

For many young buyers, tariffs may slow the “buy now” culture and encourage a more selective, long-term approach to collecting. Instead of purchasing multiple pieces, some may focus on owning one timeless model they truly value.

The Future of Gen Z and Luxury Watches

Tariffs may cool the U.S. market in the short term, but the cultural bond between Gen Z and luxury watches is unlikely to disappear. Instead, the landscape will evolve:

  • The pre-owned sector will dominate. Platforms offering authentication and warranties will thrive as trust becomes essential.
  • Digital storytelling will grow. Brands may emphasize heritage, craftsmanship, and sustainability to justify higher prices.
  • Alternative brands may rise. Japanese, German, and microbrands could attract younger buyers seeking quality without the Swiss premium.
  • Luxury watches will retain status. For Gen Z, they remain more than accessories—they are identity markers, financial assets, and conversation pieces.

Conclusion

Gen Z’s fascination with luxury watches reflects more than just style—it embodies values of sustainability, financial mindfulness, and individuality. But with new 39% tariffs on Swiss imports, the pathway to ownership has suddenly become steeper. Rather than ending the obsession, these trade barriers may simply redirect it—toward pre-owned models, overseas purchases, and creative new ways of accessing time-honored craftsmanship.

In the end, tariffs may cool spending, but they will not extinguish Gen Z’s love affair with luxury watches. If anything, it will push the generation to become even savvier collectors, redefining what it means to own time in a world that never stops moving.

 

Shweta Sharma