The watch market is currently undergoing a significant transformation, influenced by economic shifts and evolving consumer preferences. Steven Rostovsky, a prominent Los Angeles dealer specializing in rare and pre-owned timepieces, offers valuable insights into these dynamics. His perspectives highlight a resilient market in 2025 despite initial concerns over tariffs, a new focus on currency fluctuations, and a burgeoning appreciation for classic, understated watch designs. This analysis also delves into the challenges posed by fluctuating gold prices and the redefinition of global pricing strategies within the luxury watch industry.

Detailed Market Analysis: Rostovsky's 2026 Outlook

In January 2026, Steven Rostovsky, a distinguished watch dealer based in Los Angeles, provided an updated perspective on the watch market. His insights come after a turbulent 2025, a year that began with significant uncertainty due to increased tariffs on Swiss imports imposed by the Trump administration. Initially, tariffs rose to 31 percent, escalating to 39 percent by August 1st, 2025. Rostovsky responded by limiting imports, focusing instead on domestic acquisitions of brands like Arnold & Son, and surprisingly, concluded 2025 with sales exceeding those of 2024, particularly in the robust final quarter.

Rostovsky attributes the market's unexpected strength to an underlying elasticity, noting that despite higher prices caused by a weaker dollar and tariffs, consumer demand remained strong. However, his focus has now shifted from tariffs to currency exchange rates. He points out that the weakening dollar against the Swiss franc has made watches significantly more expensive in the U.S. For example, a watch priced at 10,000 Swiss francs now costs $13,000 in the U.S., a stark increase from the $8,000 it would have cost 23 years ago. This currency disparity, rather than tariffs (which have since dropped to 15 percent, prompting Rostovsky to resume imports and begin carrying the Daniel Roth brand), is now the primary concern.

Regarding consumer tastes, Rostovsky observes a swing away from the pandemic-era craze for steel sport watches. After a period of interest in uniquely shaped models for their rarity, the market is now gravitating towards "simple, beautifully made watches" in limited quantities. He emphasizes an appeal for classic round cases with uncomplicated designs, noting that the "neo-vintage" aesthetic of the 1990s and early 2000s, characterized by classic and clean lines, continues to be highly sought after. This trend is exemplified by the success of brands like Akrivia, known for their simple, well-crafted pieces.

A concerning trend highlighted by Rostovsky is the practice among some dealers of valuing gold watches based solely on their melt price, disregarding the intricate craftsmanship. He finds this disheartening, as it undermines the artistry and passion invested in watchmaking. Finally, Rostovsky notes a significant departure from the long-held industry goal of global pricing parity. It is now accepted that U.S. retail prices for watches will be higher than in other markets like Hong Kong or Geneva. Despite this, he is confident that U.S. customers will largely accept these higher prices rather than incur the additional costs and inconveniences of international travel and VAT, especially for independent brands, which continue to attract dedicated collectors.

Steven Rostovsky's analysis underscores a dynamic and resilient watch market, where classic elegance, currency shifts, and the allure of independent brands are shaping future trends. His observations provide a compelling roadmap for understanding the current luxury timepiece landscape.