Tariff imposed and Watch Prices in the USA

[Krash]

Originally Posted by watchnoob

You too have been just spewing out the soundbites that are incorrect. For example, the 61% was calculated based on trade deficit not the percentage that CH levies on American goods. Encourage you to actually learn more about tariffs and look into the facts, rather than relying on political commentators.

The equation is more complicated than that, but trade deficit is a factor. Tariffs, VATs, and just simply not letting our goods into the country are also part of the equation. And it’s not true Switzerland has no tariffs or restrictions on US goods. They do.

Also, any given country might not have formal tariffs on us, but then they might block certain products altogether on us. So that’s also a factor.


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[Miker86]

Originally Posted by G23

Its going to be a real shame that the masses will just have to learn that their days of mass consumption of ultra cheap, poorly made goods is over. Just think of the poor landfills that will have to sit empty or the rivers in China that will have to go without being filled with toxic production waste. Such a shame !

The mental gymnastics to position rising prices as a good thing is impressive.

[BradSomrak]

Originally Posted by Miker86

The mental gymnastics to position rising prices as a good thing is impressive.

It almost makes your head hurt trying to get there.

[Cru Jones]

So much hypocrisy and fake news and politics all around this topic.

The only thing for sure is that all consumers, worldwide, will pay more at the end of the day. That’s what tax does.

[G23]

Originally Posted by Miker86

The mental gymnastics to position rising prices as a good thing is impressive.

I, for one, have been oh so tired of buying cheap quality garbage. Hey, its cheap though ! I can fill my whole house with cardboard tier finery. Its sad this will end.

[fflump]

Originally Posted by JRell

It is all made up with crazy math.

No the maths is quite simple. Switzerland currently charges zero tariff on US imported goods.

[JRell]

Originally Posted by fflump

No the maths is quite simple. Switzerland currently charges zero tariff on US imported goods.

Someone needs to tell someone that!

[pessoa00]

Originally Posted by Tools

Rolex watches were already subject to a tariff, they were not coming into the country for free. Even if you bought one out of country, when you bring it in you have to pay Duty/tariff fees.

31%, if it actually sticks, is just a few percentage points above where they were already at, so to be competitive a company can reduce their "profit" by a couple of percent, as well as the retailer, and costs remain the same to the end user.

To think that tariffs are new is fear mongering, everybody everywhere pays a fee/duty/tax on goodss they import into a country.

All that has been said is that Switzerland charges an average of 61% tariff for US imports into Switzerland, so the US will impose 31% on Swiss imports unless there can be a reciprocal trade agreement made that is more balanced..

The Grey Market will not be more attractive, they would pay any tariff as well. If anything, rising prices will make the AD more attractive with increased inventory and prices lower than the Grey Market currently sells for.

Switzerland doesn’t charge an average 61% tariff to the US. That was just one of the many lies Trump told yesterday.

Actually, the formula to calculate all of the percentages shown yesterday didn’t include any assessment of tariff rates charged by each of the countries.

The formula is actually quite simple: it is calculated by dividing the U.S.’s trade deficit with a given country by their total exports to the U.S.. The tariff to be charged to each country is half of the result on this formula.

To the countries US as a surplus, the tariff is 10%.

[Maleg]

Originally Posted by G23

Its going to be a real shame that the masses will just have to learn that their days of mass consumption of ultra cheap, poorly made goods is over. Just think of the poor landfills that will have to sit empty or the rivers in China that will have to go without being filled with toxic production waste. Such a shame !

You should change your handle to Marie Antoinette, she had a similar view of the masses.

Tariffs work when applied to commodities that are produced in the US already and need strategic support to flourish globally. Raising the tax rate on every single good imported into the US without regard to whether there is an existing manufacturing capability is a mindlessly idiotic idea.

[RolexSimon]

Originally Posted by Ferrari308

At the same time, you have to recognize that tariffs are imposed heavily on any US made products that are exported. The US has applied no tariffs on anything in the post WW2 era. So, we in the US have allowed this for nearly 80 years.

The US is only doing reciprocal tariffs. This means that if any country is charging tariffs on our goods (which is almost anything & everything that we export), then we will apply the same tariffs on goods from that country.

It's intending to turn the market into a true FREE market and have the US companies have a level playing field with foreign markets.

You might notice that Canada has agreed to eliminate all tariffs with the US rather than to have to charge them. That came pretty quickly. Who is going to be next to drop their tariffs against the US? I am genuinely curious.


PDG

Haha. You guys actually believe what you're being told? 10% tariff against Australia with whom you have a legally binding free trade agreement?
We have a 10% GST which is a sales tax and applies to Australian made goods as well as those from everywhere else. Exactly the same as the USA state-based sales tax except it is decided Federally here.
Well - now you're going to have to pay a lot more for watches which means we get ours now relatively cheaper. I guess you'll be buying Tiffany / Jacob & Co and Hamilton watches from now on.......

[NAUI1982]

I tried to make a non political post about this twice immediately after the announcement, only to have them both deleted with no notice or warning. Perhaps TRF is a little too aggressive in the censorship.

[enjoythemusic]

On the big plus side, we could see more Rolex availability as weak hands get shaken out of the market.

Perhaps we should focus on the positive side of this. Could be a nice benefit for the pre-loved market too.

Win - Win if you ask me.

[Tools]

Originally Posted by JRell

Nope doesn’t work that way. These tariffs only add to the US families cost of living. Average family will pay in average $2100 more a year. Why are we not listening to any financial experts?

https://www.cnn.com/

Yes, it does work that way (tariffs=lower taxes for the population)

Over the years tariffs have been reduced, and taxes have been increased to make up for the lost revenue.

The point of tariffs is to reduce the tax burden on the people; the only other option to reduce deficits is to raise taxes.

As to adding to the cost of living, you do not have to buy tariffed products - it is a choice, not a mandate (forced tax)

[Cru Jones]

Originally Posted by Tools

Yes, it does work that way (tariffs=lower taxes for the population)

Over the years tariffs have been reduced, and taxes have been increased to make up for the lost revenue.

The point of tariffs is to reduce the tax burden on the people; the only other option to reduce deficits is to raise taxes.

As to adding to the cost of living, you do not have to buy tariffed products - it is a choice, not a mandate (forced tax)

But a tariff is a tax, just spelled differently.

[JRell]

Originally Posted by Tools

Yes, it does work that way (tariffs=lower taxes for the population)

Over the years tariffs have been reduced, and taxes have been increased to make up for the lost revenue.

The point of tariffs is to reduce the tax burden on the people; the only other option to reduce deficits is to raise taxes.

As to adding to the cost of living, you do not have to buy tariffed products - it is a choice, not a mandate (forced tax)

No they have not. You act like only Porsche 911s are getting tariffed. Everything is getting tariffed! We don’t have replacements on everything in the world we import to be made all the sudden in the US. This is wrong just own it. Layoffs already started. How is that going to help? Lower taxes on no income! Wow I am done. Goodnight all!

[Calatrava r]

A lot of knowledgeable people have said they are not certain how these tariffs will play out in the long or short term. I would think most likely countries will move quickly to seek tariff levels which are mutually beneficial to all countries concerned. Whether companies will move existing manufacturing activities really remains to be seen. Clearly, for a watch to be "Swiss Made," it needs to be mostly made in Switzerland. Most likely in the interim, we can expect to see some rise in watch prices unless a new deal is reached before Saturday.

[Tools]

Originally Posted by Cru Jones

But a tariff is a tax, just spelled differently.

But not a tax on your income or wealth. It is a "tax" on those who wish to import goods for sale, while goods produced here, or from favorable nation countries remain unchanged.

skip the Brie and go Tilamook

skip the Champagne and go Napa Valley sparkling

Skip the Pirellis and go Goodyear

[Paddydog52]

Originally Posted by OG1982

The UK is not raising tariffs on Swiss watches, so no UK buyers will pay the same as they did a month ago. Until Rolex raised prices of course.


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Ok thanks for confirming, seems like the next bi annual Rolex price increase in June/July this year and next Januarys one will be a fair bit higher than the one a few months back then!

[Nads786]

Originally Posted by Tools

In the early 1900's the US Congress passed the 16th amendment that allowed them to levy previously unconstitutional taxes on income.

Income taxes have skyrocketed as the income from tariffs was reduced to encourage trade with other countries.

Since then, tariffs have become lopsided against the US and income taxes have gone off the charts.

Tariffs are not new and should be balanced so US workers and businesses can compete on the world stage.

We didn’t have social security or Medicare in the early 1900s either. It’s a different world now.

[cy888]

The current tariffs for watches are under HS code 9102.21
https://hts.usitc.gov/search?query=9102.21

For a steel Rolex, it would be under:
HTS Code 9102.21.70

Wrist watches, not battery powered, base metal case, with automatic winding, having over 17 jewels, with band of textile or base metal

Movement – Flat fee of $1.53
Case – 4.2%
Bracelet/Band – 9.8% for textile/metal, 2% for others (9102.21.90)

This will now increase to 31%

The tariff will have to be paid by the importer, in case of Rolex, would be Rolex Watch U.S.A., Inc., It's up to them to pass the costs to the AD's.

For other watches, an AD's may directly import from Swiss or other countries.. then they will have to pay the additional costs, which will most likely be passed to the consumer in price increases.

Long Island Watch put out a vid on how it affects him:
https://www.youtube.com/watch?v=IVwIyciIIiI

[Andad]

Quote:
Originally Posted by Paddydog52 View Post
Are these tariffs going to impact the UK and Europe? Will buyers there be paying a premium from AD’s?

Originally Posted by OG1982

The UK is not raising tariffs on Swiss watches, so no UK buyers will pay the same as they did a month ago. Until Rolex raised prices of course.
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The UK is not raising tariffs on Swiss watches, so UK buyers will pay the same as they did a month ago. Until Rolex raised prices of course.

[Paddydog52]

Originally Posted by Andad

Quote:
Originally Posted by Paddydog52 View Post
Are these tariffs going to impact the UK and Europe? Will buyers there be paying a premium from AD’s?



The UK is not raising tariffs on Swiss watches, so UK buyers will pay the same as they did a month ago. Until Rolex raised prices of course.

I was referring to the usual price increases potentially being higher than usual as presumably these tariffs will impact Rolexes global operations even though the tariffs only relate to the US

[Tools]

Originally Posted by Paddydog52

I was referring to the usual price increases potentially being higher than usual as presumably these tariffs will impact Rolexes global operations even though the tariffs only relate to the US

Between Rolex Geneva and their ability to adjust by a few percent, Rolex USA and their ability to adjust, and then the Dealer and their adjustments, I would not expect there to be any noticeable or significant change to global prices or even the prices at a Dealer. However, nobody really knows, nor do we really know if these numbers stand over time.

[BradSomrak]

Originally Posted by Tools

But not a tax on your income or wealth. It is a "tax" on those who wish to import goods for sale, while goods produced here, or from favorable nation countries remain unchanged.

skip the Brie and go Tilamook

skip the Champagne and go Napa Valley sparkling

Skip the Pirellis and go Goodyear

So you want me to pay more for a worse product?

Nah, man. No thanks.

[Phrank]

Originally Posted by BradSomrak

So you want me to pay more for a worse product?

Nah, man. No thanks.

Yup....and as been the practice, Goodyear will simply raise their prices accordingly just under the tariffed products.

[Beto737]

Originally Posted by Tools

But not a tax on your income or wealth. It is a "tax" on those who wish to import goods for sale, while goods produced here, or from favorable nation countries remain unchanged.

skip the Brie and go Tilamook

skip the Champagne and go Napa Valley sparkling

Skip the Pirellis and go Goodyear

So…….skip Rolex and go Shinola?

[brandrea]

Originally Posted by Beto737

So…….skip Rolex and go Shinola?

Ok that’s funny

[mannyv11]

No tariffs on Russia or North Korea though. North Korea I get we don’t do anything with them but Russia is interesting…..

[S’portEye]

Originally Posted by DoctorsOrders

Are we tired of all this winning yet???

Its amazing the mental contortions people are putting themselves through to justify sticking by their favorite Fox News political commentators...

Nothing compared to what people had to do the last 4 years. Relax Francis, it’s all a bargaining chip.

[Brenngun]

I'm more concerned about what this will do to the price of good chocolate versus watches.