Switzerland is facing potential US tariffs of up to 39% if a deal is not struck by Thursday, which could lead to significant price hikes for high-end products such as luxury watches, premium skincare, and chocolate. The US has a large trade deficit with Switzerland, totaling $38.3 billion in 2024.
The US is a major importer of Swiss pharmaceuticals and medical devices, but some products are exempt from the tariffs. However, economists warn that a prolonged period without a deal could lead to a massive hit to growth, jobs, and stocks.
Swiss watch businesses, including Rolex, Patek Philippe, and Audemars Piguet, are particularly vulnerable to the tariffs. The retail price of a Rolex Submariner could jump from $10,000 to nearly $14,000, according to Paul Altieri, founder and CEO of online resale platform Bob’s Watches.
Nestle, one of Switzerland’s biggest firms, is expected to be minimally impacted by tariffs due to its high volume of local production in the US. However, its popular Nespresso coffee brand could see price hikes as it exports products made in Switzerland.
The 39% tariff rate would also affect Swiss beauty and skincare products, including those from brands such as La Prairie, Valmont, and Mavala. Galderma, a leading skincare company, is currently largely exempt from global tariffs but may be subject to higher levies if it expands production in the European Union, UK, or Canada.
Richemont-owned luxury jewelry brands Cartier and Van Cleef & Arpels could also see price hikes due to higher import duties. The US has a large appetite for Swiss chocolate, with many small- and medium-sized businesses expected to suffer from the tariffs. Chocosuisse’s Roger Wehrli said that a 39% tariff rate would be passed on via prices and cause a steep loss of US business for many Swiss chocolatiers.
As negotiations continue, Swiss negotiators are scrambling to avoid a massive hit to growth, jobs, and stocks. A deal is expected to have a significant impact on the country’s luxury goods industry and high-end product exports.
Source: https://www.cnbc.com/2025/08/05/chocolate-skincare-timepieces-how-swiss-tariffs-will-hit-prices.html