How Phillips Weathered Tariffs and Turbulence for a Triumphant Year 

With geopolitical uncertainty, the introduction of significant US tariffs, and a declining US dollar, many of us in the watch industry feared a market contraction in 2025. Brands, retailers, dealers and auction houses braced for a drop in sales. How did the Phillips watch team confront this landscape, and what can collectors and our friends in the industry learn from our experience to take into 2026? 

First, a bit of background. As we began curating watches for our auctions, worry and concern dominated our thoughts and team meetings. In April 2025, it was announced that watches made outside the US would be subject to a significant tariff, affecting over 99% of the timepieces we offer. The tariff made it cost-prohibitive for our team to import any watches from the 194 countries outside the United States for New York auctions, meaning we could only source watches from one country: the US. Would there be enough watches available domestically to put together worthwhile auctions? Would collectors be reluctant to consign due to fears of lower prices? 

Reaching out to clients 

There were glimpses of positivity. We saw a continuous increase in the prices of precious metals, leading us to believe that people around the world were seeking tangible assets that could provide satisfaction and stability against monetary volatility. Conversations with clients in the finance industry – executives at the highest levels – gave us optimism that the conditions were favorable for strong prices in our upcoming auctions. 

With that greater confidence, we embarked on a tireless client outreach campaign, explaining to potential consignors who had watches in the country that US-based clients bidding on watches in a New York auction would not be subject to tariffs and hence would likely bid strongly. We were also able to assure them that with the lower value of the US dollar relative to foreign currencies, international clients would likely bid more aggressively with their higher-value currencies. Prices, in our opinion, would consequently be higher than usual.  

These points were well received and proved compelling. Fortunately, collectors are very astute. Sure enough, a significant number jumped at the opportunity to consign, realizing that the market conditions were “as good as it gets” for potentially strong results in our New York auctions. 

Once we were able to share the exciting news of the FCC Prototype watch that F.P. Journe made for Francis Ford Coppola – which Phillips sold for nearly $10.8 million in December 2025 – there was no stopping American clients’ confidence in consigning to New York sales. They were rewarded and proven right. 

Putting imports in perspective 

At the same time, we feared losing a significant source of bidding if Americans declined to participate in our Geneva and Hong Kong auctions. The US market for collectors’ watches is among the strongest in the world. Now that there was a looming 15% US import tax on the total invoice price, would American bidders stay on the sidelines?  

We explained to our American clients that most international buyers who imported watches from our Geneva and Hong Kong auctions were already paying steep import taxes – usually around 20% VAT. Realizing that the playing field was essentially level, Americans simply factored the tariff into their bidding. To our surprise and delight, they became dominant again: Across Phillips’s selling locations in Geneva, Hong Kong and New York, US-based clients were either our number-one or number-two source of bids in 2025. 

As it would turn out, our initial fears of a contraction in revenue were unfounded. It was a year beyond our imagining: $290 million in sales, the highest total in history for any watch auction department. Our fall 2025 auctions were the most remarkable. In New York, our team achieved over $43.5 million with the sale of just 144 lots – the highest watch-auction total in US history. In Geneva, we set a record for the highest US dollar total at any watch auction: $83 million.  

Teamwork and quality 

Other factors played a major role in these results, including teamwork and, above all, a commitment to offering the highest-quality collectors’ timepieces. 

We take great pride in having an international team of specialists who work tirelessly together for every auction, no matter the selling location. The outstanding results we achieve season after season, especially in the most challenging of times, come from Phillips’s “all for one and one for all” culture.  

Across all of our auction locations, we stuck stubbornly to our long-held principle of only offering the highest-quality timepieces; we reject 90% of the watches offered to us. Not once did we consider compromising our standards to take on more volume and offer lower-quality watches for the sake of increasing sales. Now more than ever, collectors around the world are well-informed and extremely selective. As we saw vividly this year, they remain willing to pay significant premiums for the very best. 

These results have proven that the passion for watch collecting is at an all-time high. With clients from over 70 countries registering to bid in our auctions, watches are a global hobby on par with art collecting. The number of new collectors we see at every sale continues to grow, as does the demand for the finest timepieces.  

With headwinds similar to those of 2025 still in place, the keys to success in our industry remain the same this year: focus on quality at every level – from the timepieces on offer, to client engagement and storytelling – while working together as a united team.  

For collectors, the message is clear: Stay informed. Understanding the forces that shape the market, and speaking regularly with experienced industry experts, will help you make smarter, more strategic decisions.  

Paul Boutros is deputy chairman and head of watches for the Americas at Phillips. 

Main image: Paul Boutros. (Phillips)