The Swiss government said it saw the new White House tariffs as “very regretful.”
President Trump’s drastic tariffs will take effect
The new US tariffs are ready to target trade deficits with fees of up to 41% and key countries exemptions.
The Swiss watch industry has been struggling with weak global demand and sales recently. The Trump administration’s decision to impose a 39% tariff on Switzerland could add to that hardship.
More than 90 countries were awarded new tariffs on August 1 as part of President Donald Trump’s willingness to reduce the value of products he purchases from other countries. Trump believes tariffs will boost American manufacturing and protect jobs. Many economists are skeptical that it works.
The Swiss government said it saw the new White House tariffs as “very regretful.” The Swiss Federal Council has continued to contact U.S. authorities regarding tariffs and has said it is “continuing to seek negotiated solutions.”
Only 40% of Laos and Myanmar (also known as Burma) and Syria have been worse than Switzerland in regards to Trump’s fresh tariffs on goods. The Alpine country currently abandons its trade agreements with the US or chocolate and jewelry until August 7th, and yes, the watches are subject to a tax of more than twice the 15% of most European Union imports into the US. The Swiss drug sector was not included in the tariffs.
According to the US Trade Representative, Switzerland shipped approximately $63 billion in goods to the United States in 2024. This is about a sixth of the total exports. Conversely, goods exported from the US to Switzerland last year were estimated at $25 billion, with a trade deficit of $38 billion.
The US was Switzerland’s top market in 2024, as it is perhaps the most famous and good watch. According to the Swiss Watch Industry Federation, they account for around 17% of their exports, or about $5.4 billion.
Still, for Swiss Watches, Trump’s 39% tariffs could be bad timing.
The industry is struggling with weak demand from China, the Swiss Federation of Watch Industry says. Meanwhile, the trade uncertainty, where Trump’s tariffs were unlocked, has increased the value of the Swiss franc currency, making the country’s clock more expensive for tourists who buy it on vacation. Over the past decade, some Swiss Watch brands have also lost market share for Apple Watches.
Overall, Swiss Watch exports are declining. They had gone down 10% in May.
Swiss financial markets were closed on August 1st due to national holidays, giving stock prices for producers such as Richemont and Swatch Group a rest. However, watches from Swiss Group, a retailer that sells Rolex and other watches in the UK and the US, fell nearly 8% in UK-listed stock prices.
Customs critics argue that additional costs for products are usually passed on to consumers.
An analyst at Jefferies Global Research and Strategy told Bloomberg that if the 39% tariffs go ahead in Switzerland, Swiss watches could need to rise more than 20%.
