Tariff imposed and Watch Prices in the USA

[cyind]

Originally Posted by Calatrava r

The tariff is not based on COGS, but rather what the import value is, i.e.., what price the importer is paying for the goods. In the US, even though RUSA is wholly owned by Rolex it is a separate company which buys the watches from the parent company and then resells them at a profit to the ADs. RUSA pays corporate tax only on its NOP in the US. Rolex is thus not involved directly in the US. Several writers have suggested the import value to be 50 to 60 of MSRP in the US which roughly equals a 20 percent increase to MSRP at 31%. The import value is higher because Rolex wants to earn its profit in Switzerland.

Thanks. This makes sense. I am not an import/export expert. I was simply pointing out the calculation errors in the Everest approach based on COGS which some were citing.

[Roger Lococco]

Originally Posted by Calatrava r

The tariff is not based on COGS, but rather what the import value is, i.e.., what price the importer is paying for the goods. In the US, even though RUSA is wholly owned by Rolex it is a separate company which buys the watches from the parent company and then resells them at a profit to the ADs. RUSA pays corporate tax only on its NOP in the US. Rolex is thus not involved directly in the US. Several writers have suggested the import value to be 50 to 60 of MSRP in the US which roughly equals a 20 percent increase to MSRP at 31%. The import value is higher because Rolex wants to earn its profit in Switzerland.

That makes a lot more sense. For one thing, there would be no way of knowing what the COGS are.


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[Gearjockey]

I definitely don’t come to TRF to hear you all talk about global politics, economics or investing….blah blah blah…

However,

The trees were all kept equal by hatchet, axe and saw.





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[Hollie_Rollie]

Originally Posted by Gearjockey

I definitely don’t come to TRF to hear you all talk about global politics, economics or investing….blah blah blah…

However,

The trees were all kept equal by hatchet, axe and saw.





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Got to be honest, this thread has been a interesting read and for the most part has been civil

[Harry-57]

Originally Posted by Hollie_Rollie

Got to be honest, this thread has been a interesting read and for the most part has been civil

Yeah. However, the introduction of Rush has raised the tone considerably.

[SammyTradesTX]

Everyone take a deep breath and relax!

The tariffs are all just about negotiation and putting the rest of the world on notice that we aren’t going to let them rip us off like we have for the last 70 years.

Countries are already calling wanting to remove their tariffs.

In a few months time, I bet this will be behind us and you’ll be wishing you had bought the dip.

GLTA Hang in there!


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[Dave O]

Originally Posted by YGRLX

Lots of buyers remorse now…. For voting trump… not your watch purchase

You've got to give it some time. Change like this doesn't happen in a day.

[mongrelnomoad]

Originally Posted by SammyTradesTX

The tariffs are all just about negotiation and putting the rest of the world on notice that we aren’t going to let them rip us off like we have for the last 70 years.

Countries are already calling wanting to remove their tariffs.

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Yeah… none of this is true.

[SammyTradesTX]

Originally Posted by Dave O

You've got to give it some time. Change like this doesn't happen in a day.

Exactly! 50+ years of bad trade policy will take a little time to correct. I trust the process though.


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[SammyTradesTX]

Originally Posted by mongrelnomoad

Yeah… none of this is true.

Wait and watch my friend.


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[DoricSpiker]

Originally Posted by SammyTradesTX

Wait and watch my friend.


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Have the Penguins of the Heard islands been on the phone?


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[Yobrooks]

Originally Posted by 77T

Clever Lad, you be.

Oak shade...


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I guess you mean the Royal Oaks ... Haha

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[fflump]

Originally Posted by SammyTradesTX

Everyone take a deep breath and relax!

The tariffs are all just about negotiation and putting the rest of the world on notice that we aren’t going to let them rip us off like we have for the last 70 years.

Countries are already calling wanting to remove their tariffs.

In a few months time, I bet this will be behind us and you’ll be wishing you had bought the dip.

GLTA Hang in there!


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How have the US been ripped off? Genuinely interested.

[Dave O]

Originally Posted by mongrelnomoad

Yeah… none of this is true.

As of today, numerous countries (it has been reported more than 50) have opened talks/negotiations to get their tariffs reduced. It's real.

Originally Posted by DoricSpiker

Have the Penguins of the Heard islands been on the phone?

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Many of you joke about this thinking it was a mistake without knowing why it was done. During the last tariffs put on China they found back door ways of getting products into the US by going through other countries and avoiding tariffs. The reason these tariffs were put in place is to prevent countries like China from using the Heard Islands as a back door way of getting products to the US. We learned the last time around, and didn't want it to happen again.

Originally Posted by fflump

How have the US been ripped off? Genuinely interested.

By not allowing products such as beef, poultry, grains and other US produced items into countries as they put such a high tariff on it that we can't sell it to them, or they outright ban certain products from being sold in their country altogether.

[JRell]

Originally Posted by Dave O

As of today, numerous countries (it has been reported more than 50) have opened talks/negotiations to get their tariffs reduced. It's real.


Many of you joke about this thinking it was a mistake without knowing why it was done. During the last tariffs put on China they found back door ways of getting products into the US by going through other countries and avoiding tariffs. The reason these tariffs were put in place is to prevent countries like China from using the Heard Islands as a back door way of getting products to the US. We learned the last time around, and didn't want it to happen again.



By not allowing products such as beef, poultry, grains and other US produced items into countries as they put such a high tariff on it that we can't sell it to them, or they outright ban certain products from being sold in their country altogether.

Speaking of mistakes - these tariffs were calculated by a massive error.

https://www.axios.com/2025/04/06/tru...iffs-error-aei

[Harry-57]

Originally Posted by Dave O

By not allowing products such as beef, poultry, grains and other US produced items into countries as they put such a high tariff on it that we can't sell it to them, or they outright ban certain products from being sold in their country altogether.

That's because your meat is full of hormones and additives and your poultry is chlorine washed. Some countries won't allow such produce to be imported. Others add tariffs to cover the health and safety checks necessary before passing it through to consumers.

I don't know what the situation is with grains.

[MarioB83]

Originally Posted by Harry-57

That's because your meat is full of hormones and additives and your poultry is chlorine washed. Some countries won't allow such produce to imported.

I was here to say that, thanks Harry

[Kinnakeet]

Rolex and Tudor are expecting prices to go up May 8th due to tariffs. In the US.

[fflump]

Originally Posted by Dave O

As of today, numerous countries (it has been reported more than 50) have opened talks/negotiations to get their tariffs reduced. It's real.


Many of you joke about this thinking it was a mistake without knowing why it was done. During the last tariffs put on China they found back door ways of getting products into the US by going through other countries and avoiding tariffs. The reason these tariffs were put in place is to prevent countries like China from using the Heard Islands as a back door way of getting products to the US. We learned the last time around, and didn't want it to happen again.



By not allowing products such as beef, poultry, grains and other US produced items into countries as they put such a high tariff on it that we can't sell it to them, or they outright ban certain products from being sold in their country altogether.

But the supposed reciprocal tariffs were based on trade surplus/ deficit nothing to do with tariffs so the whole argument is flawed

[Fleetlord]

Originally Posted by Kinnakeet

Rolex and Tudor are expecting prices to go up May 8th due to tariffs. In the US.

Any word on %?

[enjoythemusic]

Originally Posted by Gearjockey

However,
The trees were all kept equal by hatchet, axe and saw.

Truth, but the more that things change...

(again, my fave kit if his... and don't forget the time signature changes. :) )

[Dave O]

Originally Posted by fflump

But the supposed reciprocal tariffs were based on trade surplus/ deficit nothing to do with tariffs so the whole argument is flawed

The US has a $1.2 trillion dollar trade deficit. We are trying to real this in. You may not like the the chart/metrics being used, but the end game is to reduce the deficit and tariffs are the approach to get us there.

This won't happen overnight. It'll take time. The sky is not falling. So let's sit back and see how it shakes out.

[Dave O]

Originally Posted by Harry-57

That's because your meat is full of hormones and additives and your poultry is chlorine washed. Some countries won't allow such produce to be imported. Others add tariffs to cover the health and safety checks necessary before passing it through to consumers.

I don't know what the situation is with grains.

Let's not kid ourselves. It's to protect your market. Very similar to how there are very few American cars in many areas of the world but in the US there is a major foreign car market. Why? Because those countries don't want US cars in their market.

[Calatrava r]

Originally Posted by Kinnakeet

Rolex and Tudor are expecting prices to go up May 8th due to tariffs. In the US.

May 8. I wonder if that date is due to the amount of stock already here. Seems like they would have moved sooner.

[Calatrava r]

Originally Posted by Dave O

The US has a $1.2 trillion dollar trade deficit. We are trying to real this in. You may not like the the chart/metrics being used, but the end game is to reduce the deficit and tariffs are the approach to get us there.

This won't happen overnight. It'll take time. The sky is not falling. So let's sit back and see how it shakes out.

Comforting thoughts. The problem is we did not get here overnight, and we may not fix it overnight either. A protracted impasse over all this can take a big toll in the interim which could take a lot of time to repair. Would not it have made more sense just to repair the problem in some measured manner and not have to also deal with repairing the damage from the fix.

[JRell]

Originally Posted by Calatrava r

Comforting thoughts. The problem is we did not get here overnight, and we may not fix it overnight either. A protracted impasse over all this can take a big toll in the interim which could take a lot of time to repair. Would not it have made more sense just to repair the problem in some measured manner and not have to also deal with repairing the damage from the fix.

Thank you - a very short way of saying what I wanted to say above.

[Dr. Robert]

Originally Posted by JRell

Good point - 100% agree.

I’m retired, my portfolio took a beating.
Can I park & live in your driveway?


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[JRell]

Originally Posted by Dr. Robert

I’m retired, my portfolio took a beating.
Can I park & live in your driveway?


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I am not retired, but mine also did. Really sorry to hear that. Yes anytime you can park and live in my driveway. Heck I got spare bedroom as well! Remember as bad as it might get, you got a home here.

[Dr. Robert]

Originally Posted by JRell

I am not retired, but mine also did. Really sorry to hear that. Yes anytime you can park and live in my driveway. Heck I got spare bedroom as well! Remember as bad as it might get, you got a home here.

Merci boo coo

I’m ok for now. I live very zen.
But no watches for me this birthday : )


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[JRell]

Originally Posted by Dr. Robert

Merci boo coo

I’m ok for now. I live very zen.
But no watches for me this birthday : )


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I hear you. Luckily my Daytona won’t be coming in anytime soon. Just watch, NOW it will come in!