A 39% tariff imposed by US President Donald Trump on Swiss imports has sent shockwaves through the country’s watch industry, with many high-end brands rushing to ship watches to the US before the deadline and others planning price hikes or pausing US sales.
Swiss watchmaker DuBois et fils has accelerated shipments of five high-end watches worth thousands of dollars each to get them through customs before the tariff came into force. The company’s CEO, Thomas Steinemann, said that blocking US orders was necessary due to the need for price recalculations.
The impact on the Swiss economy is expected to be significant, with analysts estimating a 0.3-0.6% knock-off in GDP growth over the next year. This could lead to increased unemployment and a cut in potential growth, according to investment strategist John Plassard.
Many brands have already shipped some product to the US in advance, but this is not a long-term solution. Analysts Amarildo Pilo and Plassard warn that Americans will no longer buy watches in the US, citing the significant price increase due to tariffs.
The Swiss watch industry has seen 17% of its total exports go to the US last year, worth around $32 billion. The tariff hike will make Swiss watches some 65% more expensive on average for US consumers.
Source: https://www.reuters.com/business/240-year-old-swiss-watchmakers-race-beat-trumps-tariff-deadline-2025-08-08