Swiss Watch Industry Braces for Impact as Trump Tariffs Loom

The prestigious Swiss watch industry, long admired for its craftsmanship and precision, is now facing turbulent times as former U.S. President Donald Trump’s proposed 31% tariffs on Swiss imports send shockwaves through the market. With the United States being the largest destination for Swiss watches, industry experts warn that this unexpected tariff hike could reshape the landscape for both luxury and mid-range timepieces.

A Blow to Switzerland’s Largest Export Market

The U.S. accounts for 16.8% of all Swiss watch exports—equivalent to around 4.4 billion Swiss francs (approximately $4.9 billion USD) annually. Brands ranging from household names like Tissot, Longines, and Rolex, to independent high-end ateliers like Armin Strom and Laurent Ferrier, rely heavily on the American consumer.

The proposed tariffs would add 31% to the cost of Swiss-made watches entering the U.S., significantly increasing retail prices for American buyers. For a watch priced at 20,000 francs (a common figure for vintage or luxury models), that could mean an added $6,000—potentially scaring off buyers and harming retail relationships.

Sacha Davidoff, a vintage watch seller in Geneva, described the issue plainly: “We are supposed to ship the watch, but what do we do now? The client won’t want to pay 31% more. It doesn’t feel real.”

Market Ripples and Share Slumps

News of the tariff has already caused a ripple effect in European stock markets. Shares of luxury watch groups like Swatch and Richemont dropped sharply following the announcement. Richemont, which owns Cartier and IWC, saw shares fall by 4%, while Swatch Group dipped by 4.3%.

JPMorgan analysts noted that the Swiss watch industry is already navigating narrow profit margins. The additional costs imposed by tariffs are likely to reduce the competitiveness of Swiss brands in the U.S., opening the door to other watchmaking nations like Japan and Germany.

Retailers and Watchmakers React

Some Swiss watch brands are attempting to minimize the damage by fast-tracking shipments to the U.S. before the tariffs take effect. Serge Michel, founder of Armin Strom, reported that American retailers are asking for anything available to be shipped immediately: “They’re saying, ‘Please ship whatever you have ready to ship now.’”

While that may cushion the blow temporarily, it offers no long-term solution. Many brands may be forced to absorb part of the cost themselves or look into assembly or warehousing alternatives outside Switzerland, which could dilute the “Swiss Made” label’s prestige.

Switzerland Pushes Back

The Swiss government, which was not part of the trade negotiations that resulted in the tariffs, has strongly criticized the move. Swiss President and Finance Minister Karin Keller-Sutter and Economy Minister Guy Parmelin have both called the tariffs “incomprehensible” and reaffirmed Switzerland’s commitment to rules-based, open trade.

Although Switzerland is currently not planning retaliatory tariffs of its own, officials have hinted at opening discussions with U.S. representatives to negotiate exemptions or reduce the severity of the measures.

A Worrying Trend Amid Global Uncertainty

These new tariffs arrive at a time when the Swiss watch industry is already under pressure due to slowing demand from China, supply chain issues, and changing consumer habits. For many brands, the U.S. has been the stabilizing market in recent years. Losing that stronghold, or even seeing a dip in demand, could significantly impact revenue projections in 2025 and beyond.

The mood at the 2025 Watches and Wonders Geneva fair was reportedly anxious. Retailers, collectors, and CEOs expressed uncertainty about what the next months would bring.

For lovers of Swiss watches in the U.S., now may be the time to purchase before prices rise. For brands, this is a moment of reckoning—an opportunity to re-evaluate supply chains, pricing structures, and international outreach. Whether the Swiss government can negotiate a better outcome remains to be seen, but one thing is certain: the Swiss watch industry is entering one of its most challenging eras in recent memory.