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Looming tariffs are creating a cushion for the pre-owned watch market after a challenging two years.
As Swiss watch brands raise prices in the US, Morgan Stanley analysts said they expect more consumers to turn to the secondary market.
Prices of pre-owned watches fell 0.3% in the second quarter of 2025, the lowest quarterly rate of decline in 13 quarters, according to data from pre-owned watch research platform WatchCharts that Morgan Stanley analyzed.
Demand for brands like Rolex, Patek Philippe, Omega, and Cartier helped stabilize the secondary market.
Prices in the secondhand market have been falling since mid-2022.
However, most of the leading Swiss watch brands, including Rolex, have recently raised prices in the US, likely in response to higher tariffs, Morgan Stanley said in its report. Many of the biggest names in luxury watches hail from Switzerland, which is facing a 31% tariff. All of the brands tracked raised retail prices in the US last quarter, the analysts said.
“While the precise effect of US tariffs on retail sales remains unknown, we expect higher retail costs will continue to push consumers toward the secondary market and have an uplifting effect on prices,” the analysts wrote in a report on Tuesday. “This may help to accelerate secondary market recovery, though likely at the expense of retail sales.”
The higher retail prices aren’t lifting all boats in the secondary market. Demand is largely concentrated with blue-chip brands.. Outside Rolex, Patek Philippe, Omega, and Cartier, the secondary market saw steeper price declines.
Still, one pre-owned watch dealer, Bob’s Watches, told Business Insider in June that business was like running a “candy store.” The marketplace’s sales jumped 20% from March to the end of May.
According to the Morgan Stanley report, Rolex and Patek Philippe in particular outperformed in the secondary market in Q2, reflecting their popularity.
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