Date: August 9, 2025
Category: Swiss Watch Industry, Trade News
The United States has officially imposed a 39% tariff on Swiss imports, including luxury watches, marking one of the steepest trade levies in the developed world. The new rate, which excludes pharmaceuticals, took effect at midnight in the U.S. and 6 a.m. in Switzerland, following unsuccessful last-minute negotiations between Swiss President Karin Keller-Sutter and U.S. President Donald Trump.
Impact on the Swiss Watch Industry
The hike from the previous 10% tariff has sent shockwaves through an industry already struggling with:
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A post-pandemic slowdown in global demand
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A 12% rise in the Swiss franc against a weaker U.S. dollar
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Rising production costs, driven partly by record-high gold prices
The U.S. is the largest single market for Swiss watches, accounting for about 20% of exports. With European and Chinese demand also softening, analysts warn that the new tariff poses a “highly toxic cocktail” for the sector.
Lower-priced Swiss watches, as well as mid-tier brands, are expected to feel the biggest impact. Swiss suppliers of watchmaking machinery and tools—around 15% of whose exports go to the U.S.—are also facing significant challenges.
Smaller Brands Under Pressure
For small, independent watchmakers like Zeitwinkel, based in Saint-Imier, the tariff means accepting higher import costs without much room to negotiate. Producing around 100 watches a year with an average price of CHF 18,000, the brand fears for U.S. retailers specializing in niche Swiss brands.
Economic and Political Fallout
Swiss business leaders warn the tariff could shrink national economic growth by 0.3% to 1%. Switzerland, with $307 billion in cumulative U.S. investments and over 500,000 U.S. jobs supported by Swiss affiliates, has long been a key economic partner for America.
However, trade tensions flared after Switzerland declined to offer major concessions similar to those made by Japan and the EU, which promised big investments in U.S. manufacturing and energy projects.
Price Hikes for U.S. Consumers
Many top Swiss watch brands—Rolex, Omega, Patek Philippe, Audemars Piguet—had already increased U.S. prices by 3%–10% after the initial tariff. The new 39% rate could lead to even steeper hikes, though it’s still unclear how costs will be split between brands, importers, and consumers.
Looking Ahead
Swiss business organizations are calling for diversified trade partnerships and a focus on stability, warning that long-standing U.S.-Swiss trade ties are now at risk. For U.S. watch enthusiasts, the new tariff could mean paying significantly more for their next timepiece.
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