Five days. That's all it took to go from 39% tariffs on Swiss watches to a Supreme Court smackdown to a brand-new 15% levy under a law nobody had heard of. If you're a watch collector trying to figure out what just happened — and more importantly, what it means for your next purchase — here's the short version and the long version.

The timeline, because it matters

The tariff saga on Swiss watches has been running since April 2025, when a 10% baseline tariff hit under IEEPA (the International Emergency Economic Powers Act). That rate climbed to 39% by mid-2025. European collectors watched US prices spike. American buyers started eyeing European dealers. The secondary market got weird.

Then, on February 20, 2026, the Supreme Court ruled 6-3 that Trump's use of IEEPA to impose tariffs exceeded presidential authority. The $160 billion question — literally, that's roughly how much had been collected — was suddenly on the table.

But here's where it gets interesting. The same day the court struck down the tariffs, Trump signed a proclamation under Section 122 of the Trade Act of 1974, imposing a 10% global tariff. The next day, he raised it to 15% — the legal maximum under that statute. By February 24, the new tariffs were live.

So in five days: 39% → 0% → 10% → 15%. Welcome to trade policy in 2026.

What is Section 122, and why should you care?

Section 122 is a Cold War-era provision that's never been used before. It allows the president to impose tariffs of up to 15% for 150 days without congressional approval, but only when there's a "large and serious" balance-of-payments deficit.

The 150-day clock started on February 24. It expires on July 24, 2026. After that, Congress must vote to extend, or the tariffs lapse.

Legal analysts at RSM have already argued that the conditions for Section 122 haven't actually been met — the economy, balance of payments, and currency regime all fail the statutory standard. Legal challenges are expected. But for now, 15% is the number.

What this means for Swiss watch prices

Let's talk money.

Before the ruling: Swiss watches entering the US faced a 39% tariff. Brands responded — Patek Philippe raised US retail prices by roughly 15% in 2025. The gap between US and European pricing widened to 8.4% on the secondary market, according to Chrono24's 2025 data.

After the ruling: Patek Philippe has already cut US prices by approximately 8.5%. Other brands are expected to follow, though most haven't announced adjustments yet. At 15%, the import burden is less than half what it was.

But Patek also raised global prices by 4% — a hedge that tells you something about how the industry views long-term tariff risk. They're not betting on zero.

For the pre-owned market, the dynamics are different. Pre-owned watches already in a destination country bypass import tariffs entirely. A Rolex Submariner or GMT-Master II purchased from a European dealer and shipped within Europe carries no US tariff. For American buyers, pre-owned watches already stateside become significantly more attractive versus new Swiss imports.

The European buyer's advantage

This is where it gets relevant for our audience. If you're buying from a European dealer — and ChronoTimepieces operates from Europe — US tariffs don't apply to your transaction. You're buying European inventory at European prices.

The 8.4% price premium that US buyers were paying over European prices should narrow now that tariffs dropped from 39% to 15%. But it won't disappear. And with Patek's 4% global increase, European pre-owned prices may actually firm up as demand shifts.

For European collectors, the calculus is straightforward: the global market just got less distorted. That's good for everyone who isn't speculating on tariff arbitrage.

The refund question nobody can answer yet

The SCOTUS ruling means those 39% tariffs were illegal from the start. Over $200 billion in tariffs were collected since 2024. Justice Kavanaugh warned in his dissent that "refunds of billions would have significant consequences for the Treasury."

The court left refund mechanics to future proceedings. Watch importers who paid 39% when the legal rate was apparently 0% have a case. But "having a case" and "getting your money back" are different things in Washington. This will take years to resolve.

The Swiss response tells you everything

Reuters reported on February 24 that Swiss officials signalled the country "may have to accept US tariffs as permanent." That's a remarkable shift from the earlier stance of "we'll negotiate this away."

Read between the lines: even at 15%, the Swiss watch industry is adapting to a world where US tariffs are a structural feature, not a temporary disruption. Brands will continue adjusting pricing, production, and distribution strategies around this reality.

What smart buyers do now

Here's the practical takeaway:

If you're in Europe: This is a buying window. Pre-owned European prices haven't caught up to the tariff reduction yet. The Audemars Piguet Royal Oak Offshore, the Rolex Day-Date 40, the Vacheron Constantin Overseas — pieces like these still carry European pricing while global markets reprice.

If you're in the US: Pre-owned from domestic sources avoids the 15% entirely. If importing from Europe, 15% is manageable compared to 39%. But watch the July 24 deadline — if Congress doesn't extend Section 122, tariffs could drop to zero or jump to something else entirely.

If you're anywhere else: The tariff chaos is primarily a US-centric story, but it's been pulling global pricing out of alignment for a year. As that corrects, secondary market prices should stabilize. Good time to be a buyer, not a speculator.

The 150-day clock is ticking

The central narrative now is July 24, 2026. That's when Section 122 expires. Between now and then:

Legal challenges will test whether Section 122's conditions are met
Trump has signalled he'll pursue Section 232 and Section 301 authorities as backup
Congress faces pressure to either codify tariffs or let them lapse
Brands will make pricing decisions based on their best guess at the outcome

We covered the original tariff impact in our August 2025 analysis. Everything we said then about European buyers benefiting from US tariff policy still holds — just at 15% instead of 39%.

The market doesn't like uncertainty. But collectors who understand the mechanics can use it. The watches don't care about tariffs. They keep ticking regardless.

Looking for a specific watch at the right price? Browse our current inventory or contact us — we source worldwide and know where the value is.

From 39% to 15%: what the SCOTUS tariff ruling means for watch buyers