Switzerland closing in on tariff deal for watchmakers
Switzerland is nearing a trade agreement with the United States that could significantly reduce the current 39% tariff on Swiss watches. President Trump indicated his willingness to negotiate lower tariffs during a meeting with prominent Swiss watch executives, including Rolex's CEO and the Richemont chairman. Reports suggest that the tariff may be lowered to 15%, aligning it with the European Union's rate, although Swiss officials have remained tight-lipped about the ongoing negotiations. The imposition of the additional tariff has severely impacted Swiss watch exports, with sales to the U.S. plummeting by 55.6% in September. Despite this, total Swiss watch exports to the U.S. for the first nine months of 2025 still reflect a 10.4% increase from the previous year, highlighting the market's importance. The U.S. remains the largest market for Swiss watches, worth CHF 3.5 billion so far this year, far surpassing other markets like Japan and China. In response to the tariffs, many luxury brands have adjusted their pricing strategies to maintain sales.
