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GENEVA – The Swiss watch industry is facing its most significant trade shock in years after U.S. President Donald Trump announced a 31% import tariff on goods from Switzerland, sending ripples across global luxury markets.
The tariffs—part of a wider package targeting European imports—were unveiled on April 2, just as the Watches and Wonders fair opened in Geneva. Switzerland’s top watchmakers and exporters now face urgent questions about their access to the U.S., their largest export market, which accounted for 16.8% of exports—roughly CHF 4.4 billion in 2024.
Immediate Industry Fallout
Swiss watch retailers and manufacturers scrambled to assess the implications:
- Sacha Davidoff, a Geneva-based vintage watch seller, noted the sudden impact: “I made a deal, and now we’re stuck… the client won’t want to pay 31% more. It doesn’t feel real.”
- The average vintage timepiece Davidoff exports sells for CHF 20,000 (USD 23,272)—which now faces an additional CHF 6,000 in import taxes.
- Swiss brands remain largely silent, with industry giants like Swatch Group and Richemont declining to comment on the trade measure.
Market Reaction & Strategic Concern
- European luxury stocks dipped following the tariff news.
- JPMorgan analysts warned that Swatch and Richemont—already under margin pressure—will bear the brunt of this policy shift.
- “The U.S. market is absolutely critical,” said David Sadigh, CEO of Digital Luxury Group. “With a slowdown in China already happening, this creates real nervousness.”
| Market | Share of Exports (2024) | Value |
|---|---|---|
| USA | 16.8% | CHF 4.4B |
| China | ↓ >25% (YoY Decline) | N/A |
Sentiment on the Ground: Freeze or Free Fall?
From booths at Watches and Wonders—where Rolex, Cartier, and Patek Philippe showcased new collections—industry insiders reported cancelled U.S. meetings, tense atmospheres, and widespread concern over 2025 sales forecasts.
- Clement Fehrenbacher, of Le Cercle des Horlogers (a Swiss supplier to luxury brands), said: “It’ll be very difficult to get new projects if the market doesn’t recover.”
Behind the glamour of Swiss precision timepieces lies a rapidly freezing transatlantic trade pipeline.
Broader Implications
The tariffs arrive amid an already fragile global demand environment. Exports to China—the No. 2 market for Swiss watches—fell over 25% in 2024, compounding concerns now heightened by Trump’s trade stance.
Whether the move is a negotiating tactic or part of a longer-term strategy, the Swiss luxury sector finds itself in a precarious position, with potential ripple effects across the EU, manufacturing suppliers, and high-end retailers globally.
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