Swiss Watch Industry Braces for Impact as U.S. Imposes New Tariffs
Shares in Europe’s top luxury brands took a sharp hit after President Donald Trump announced sweeping new tariffs: a 31 percent duty on Swiss imports and a 20 percent tariff on goods from the European Union.
Swiss Watchmakers Scramble to Assess Fallout
Swiss watchmakers and retailers are now scrambling to gauge the fallout. Exporters fear that the higher costs could dampen demand among American buyers — a critical market for Swiss luxury timepieces, already considered a premium product. Analysts warn that the tariffs could add thousands of Swiss francs to the price tags of high-end watches.
Vintage Watch Sellers Hit Hardest
The vintage market, featuring brands like Rolex, Piaget, and Patek Philippe, stands to suffer most. The United States accounts for a significant portion — 16.8 percent — of Switzerland’s watch exports, representing 4.4 billion francs annually, according to the Federation of the Swiss Watch Industry.
Tension Mounts at Geneva’s Watches and Wonders Fair (
At Geneva’s Watches and Wonders fair, where luxury brands such as Rolex, Cartier, and Chopard recently unveiled new collections, the atmosphere was tense. Industry insiders voiced fears that the tariffs could trigger a sharp downturn or even freeze the U.S. market. Several meetings with American buyers were reportedly cancelled, casting a shadow over future business prospects.
Small Suppliers Face Uncertainty
Smaller players like Le Cercle des Horlogers, a specialized supplier of intricate watch components, are particularly vulnerable. Many await decisions from American clients, deepening the industry’s growing uncertainty.
Luxury Sector Faces Broader Challenges Beyond the U.S.
The timing could not be worse. Swiss watchmakers are already grappling with declining sales to China, their second-largest market, where exports plunged over 25 percent in 2024. With major markets under pressure, the resilience of the luxury watch sector is facing a critical test.
Analysts Warn of a Difficult Road Ahead
While celebrated names like Vacheron Constantin introduced sophisticated new models at the Geneva show, most brands avoided making public statements about the escalating U.S. trade tensions.
