Horology vs. The White House: The Lawsuit Shaking Up the Luxury Watch Market

A Ventura, California-based independent watch dealer, Collective Horology, has initiated a legal battle against President Donald Trump and U.S. Trade Representative Jamieson Greer. The retailer claims that the administration’s newly implemented import taxes bypass congressional approval, overstep presidential authority, and illegally penalize American businesses. Submitted on July 24, 2026, to the United States Court of International Trade, the complaint was filed jointly with a New York-based spice importer, Burlap & Barrel. The non-profit Liberty Justice Center, an organization that advocates for economic liberty and previously led a successful Supreme Court challenge against earlier tariff programs, is backing their legal effort. To learn more about the impact of tariffs on the Swiss industry, click here. 

The Core Legal Dispute 

The contested duties impose an additional 10% to 12.5% tax on imported goods. The government enacted these measures under Section 301 of the Trade Act of 1974, pointing to concerns over forced labor in the affected nations. However, this sweeping policy includes Switzerland, a country renowned for some of the highest wages in Europe and the epicenter of high-end horology. Asher Rapkin, CEO and co-founder of Collective Horology, has clarified that the lawsuit is not an attempt to dismiss the severity of forced labor. Instead, the plaintiffs argue that the government failed to conduct the mandatory country-specific evaluations required by law, opting instead to enforce a blanket tariff on nearly all US trading partners. The lawsuit seeks to halt the enforcement of these latest taxes and ensure businesses can reclaim their funds if the courts once again deem the measures unlawful.

The Financial Toll on the Watch Industry 

The financial strain on small retailers has been immense. Founded in 2018 by Rapkin and Gabe Reilly, Collective Horology has been absorbing successive waves of trade taxes since April 2025. The company is currently waiting on over $164,000 in refunds from previous IEEPA tariffs, all while continuing to lose tens of thousands of dollars to subsequent Section 122 and Section 301 duties. To illustrate the immediate impact, the retailer anticipates an upcoming shipment of timepieces valued at $69,000, which will automatically incur an estimated $8,280 in added government fees. These surprise expenses drain essential operating capital and disrupt cash flow for small businesses that lack the negotiating power and financial reserves of massive luxury conglomerates.

An Industry-Wide Squeeze 

Because of the new policies, the base cost of importing a Swiss watch into the United States has surged by at least 12.5%. This sudden spike compounds an already difficult economic climate for the industry, which is currently grappling with a remarkably strong Swiss franc and record-high costs for the precious metals used in luxury watchmaking. While small independent dealers are feeling the immediate sting, Rapkin noted that the trade environment is negatively impacting the entire supply chain. From massive holding companies to small-scale independent watchmakers, the tariffs are driving up costs across the board. 

Ultimately, these fees force unwanted retail price hikes, making the hobby significantly more expensive for collectors. Frustrated by the situation, Rapkin expressed that he would much rather focus on the art of watchmaking than navigate complex trade law, but felt it was his company's turn to step up and defend the industry in court after watching other businesses lead previous legal battles. To understand what the tariffs on Swiss watches mean for India, click here.