Swiss Watch Industry Faces US Tariff Crisis
Switzerland's watch industry confronts new 39% US tariffs that threaten its most important export market. Industry leaders express confusion about why Switzerland was targeted despite significant US investments. Some companies delay price hikes while others increase costs by up to 15%.
Switzerland's famous watch industry faces a major challenge. New 39% US tariffs hit the country's most famous exports hard. Behind the scenes, diplomatic efforts aim to persuade the Trump administration to reconsider.
Jan Atteslander of business organization Economiesuisse expressed confusion about the situation. "We don't understand why Switzerland was hit so hard," he said in a statement. "We already invest heavily in the United States."
The numbers reveal the reason for the tariffs. Switzerland maintains a large trade surplus with the United States. Pharmaceuticals, gold, and watches explain most of this surplus. The watch industry feels the new tariffs most directly.
Yves Bugmann of the Federation of the Swiss Watch Industry confirmed the impact. "The United States is the most important market for Swiss watch exports," he noted. "These tariffs create a heavy additional burden for our companies."
Some watch brands with US retailers prepared for the tariffs. They stocked up their inventories before the duties took effect. These companies delay price increases for now. Others already raised prices by up to 15 percent.
The situation highlights how trade disputes affect luxury goods markets. Switzerland's famous timepiece makers now face difficult choices between absorbing costs or passing them to consumers.