U.S. And Switzerland Reach Tariff Deal Bringing Relief To Swiss Watchmakers
Switzerland has successfully negotiated a significant reduction in tariffs imposed by the U.S. on Swiss watches, lowering them from 39% to 15%. This change brings relief to the Swiss watch industry, which has been adversely affected by the high duties that prompted many brands to raise prices. The agreement was facilitated by a recent dynamic in discussions between Swiss officials and the White House, with Swiss Economic Affairs Minister Guy Parmelan noting that the deal provides much-needed security for the sector amidst previous uncertainties. The tariff relief follows a positive trajectory in the financial performance of Swiss luxury conglomerate Richemont, which reported better-than-expected results despite earlier pressures from tariffs. The improved sales, particularly in the U.S. and China, combined with the new tariff agreement, signal a potential stabilization for Swiss watch brands. Executives indicated that the financial impact of maintaining the higher tariffs would have been detrimental, emphasizing that the newly negotiated rates align Swiss tariffs with those of other watch-producing nations, thus enhancing competitive conditions for the industry.
