DIY Watch Club's European Ambition Amid U.S. Tariff Storm

The rise of Hong Kong’s DIY Watch Club offers a microcosm of how global trade tensions are reshaping business strategies. Founded by Quinn Lai, the brand has surged in Europe after U.S. tariffs on Hong Kong and Chinese goods—imposed in 2023 and expanded in 2025—threatened its profitability. Now, as the EU grapples with its own trade policies and retaliatory measures, the watchmaker’s European expansion hinges on navigating a labyrinth of tariffs, geopolitical risks, and shifting consumer preferences.

The Tariff Catalyst: From U.S. Retreat to European Growth

When the U.S. eliminated its de minimis exemption for shipments under $800 in 2023, DIY Watch Club faced a potential 20-30% revenue drop. Lai’s response was swift: pivot to Europe. By 2025, the brand’s European market share had jumped from 6% to 30%, thanks to targeted social media campaigns and influencer partnerships. Even as the U.S. remains its largest market (accounting for half its revenue), the shift has insulated the business from further U.S. protectionism.

The 2025 U.S. tariffs, which raised rates on imports to 10% globally and up to 50% for some countries, have only reinforced this strategy. Hong Kong’s status as a trade hub—bolstered by the Hong Kong Trade Development Council (HKTDC)—has further enabled the brand to leverage platforms like the Hong Kong Gifts and Premium Fair, where European buyers were among the 100,000 attendees in 2025.

The Hang Seng index plummeted 13% in April 2025 amid global tariff-driven uncertainty, underscoring the risks of overexposure to U.S. markets.

Navigating Europe’s Complex Landscape

Europe presents both opportunities and obstacles. The EU’s delayed implementation of sustainability regulations (e.g., the Corporate Sustainability Reporting Directive) offers a two-year reprieve for compliance costs, but its potential retaliatory tariffs against U.S. goods could indirectly benefit Hong Kong exporters by reducing competition. For instance, EU plans to impose tariffs on U.S. tech firms or financial services might open gaps for non-U.S. brands like DIY Watch Club.

However, the EU’s own protectionist measures, such as stricter steel tariffs and anti-dumping investigations, could complicate supply chains. The brand’s reliance on steel components for watch casings—now subject to reduced EU tariff rate quotas—may force cost adjustments or regional sourcing shifts.

The HKTDC’s Role as a Bridge to Europe

The HKTDC’s 2025 trade fairs, such as the Home InStyle show, have been instrumental in connecting Hong Kong brands to European buyers. Moral Team Holdings Ltd., a Hong Kong manufacturer of eco-friendly bags, exemplifies this strategy: it secured Asian market orders while planning long-term expansion into Europe. DIY Watch Club, similarly, has used these platforms to showcase its customizable designs—a niche appealing to European consumers’ preference for personalized luxury.

Risks and Reward: Balancing Act in a Volatile Market

The EU’s internal divisions over retaliatory measures add uncertainty. A delayed EU trade minister meeting in April 2025 highlighted the bloc’s struggle to unify its response to U.S. tariffs, potentially delaying beneficial policies for Hong Kong exporters. Meanwhile, the German Dax index’s 9% drop in April 2025 reflects broader economic fragility, which could dampen discretionary spending on watches.

Yet, the brand’s focus on high-margin segments—such as smart home technology and designer products—aligns with growth areas identified in 2025 trade data. For example, smart home tech accounted for 21% of furniture/houseware demand in Europe, a trend DIY Watch Club could leverage through tech-integrated designs.

Conclusion: A Calculated Gamble Paying Off

DIY Watch Club’s European push is a calculated bet on diversification amid trade chaos. With a 30% market share in Europe and HKTDC support, the brand is well-positioned to capitalize on U.S. tariffs and EU demand for customizable luxury. However, success hinges on managing supply chain costs, navigating EU regulations, and weathering market volatility.

The data is compelling: while the Hang Seng index and Dax faced steep declines in 2025, DIY Watch Club’s strategic pivot has already delivered a tripling of European sales. If it can sustain this momentum, the brand may prove that in a fractured global economy, agility and foresight are the ultimate tariffs.

Data sources: Hong Kong Trade Development Council reports, U.S. International Trade Commission, European Commission policy updates.