Patek Philippe expected to cut prices when US tariffs drop
Patek Philippe is anticipated to reverse recent price hikes and cuts to dealer margins that were implemented following a significant increase in import tariffs on Swiss watches. After the U.S. raised tariffs by 39% in August, the luxury watchmaker raised prices by approximately 15% in September. This adjustment was part of a broader strategy to share the burden of higher tariffs among manufacturers, retailers, and consumers, as previous price increases had also occurred earlier in the year in response to a 10% tax imposed in May. While Swiss officials suggest that tariffs may soon decrease to 15%, Patek Philippe has not confirmed its intention to lower prices. Should the tariffs be reduced, it could potentially bring down the price of high-end models like the Patek Philippe Cubitus Ref. 7128/1G-001 from around $100,000 to approximately $80,346. The company aims to maintain price competitiveness globally, particularly as U.S. prices currently exceed those in other markets, such as the UK. Delaying price cuts could risk slowing sales as the holiday season approaches, while other Swiss watchmakers have opted to absorb tariff costs rather than adjusting their pricing strategies.
