Swiss Watch Industry Braces for Impact After New US Tariffs

The Swiss watch industry is facing mounting pressure following the announcement of new US tariffs on goods from Switzerland and the European Union
Swiss Watch Industry Braces for Impact After New US Tariffs
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Shares in European luxury companies fell sharply after President Donald Trump revealed plans to impose a 31 percent tariff on Swiss imports and a 20 percent tariff on those from the EU.

Swiss retailers and manufacturers scrambled to assess the implications, with exporters particularly concerned about the added costs that could discourage American buyers. The new tariffs threaten to add thousands of Swiss francs to the price of high-end watches, already a premium product in the US market.

Vintage watch sellers, dealing in brands such as Rolex, Piaget, and Patek Philippe, are among those hit hardest. For many businesses, the United States represents a significant share of their exports. According to the Federation of the Swiss Watch Industry, the US accounts for 16.8 percent of Switzerland’s watch exports, amounting to 4.4 billion francs.

At a major watch fair in Geneva, where Swiss brands like Rolex, Cartier, and Chopard showcased their latest offerings, the mood was noticeably tense. Industry insiders expressed concern that the tariffs could freeze the market or send it into a downward spiral. Several meetings with American clients were reportedly cancelled, and the prospect of securing new projects appeared bleak.

Smaller manufacturers, such as Le Cercle des Horlogers, which supplies intricate components to the big brands, voiced particular worries about the future, especially if the US market remains unstable. Some are awaiting decisions from American clients, adding to the atmosphere of uncertainty.

The industry’s unease is compounded by a challenging 2024, during which sales to China — Switzerland’s second-largest market — fell by over 25 percent. With key markets under strain, the resilience of the luxury watch sector faces a major test.

While brands like Vacheron Constantin unveiled complex new designs at the Watches and Wonders fair in Geneva, most major names refrained from commenting publicly on the US trade measures.

Analysts warned that with slowing domestic demand in China and now increased barriers in the US, Swiss watchmakers could be entering one of their most difficult periods in recent memory.

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