Swiss Watches Get U.S. Tariff Relief
Swiss watches get tariff relief - Life in Classic
A Reset in Trade Terms
After months of uncertainty, the Swiss watch industry finally has clearer footing in the United States. Switzerland and the U.S. have agreed to reduce tariffs on Swiss goods to 15 percent. The lower rate applies retroactively to November 14, the day officials first presented the framework. Previously, Washington raised the tariff on Swiss goods to 39 percent in August, among the steepest levels imposed on an industrialized partner. Now the 15 percent rate brings Switzerland closer to treatment afforded to the European Union and Japan.
For watchmakers, the shift matters immediately. The U.S. is the largest single-country market for Swiss watches, representing roughly one fifth of exports. Therefore, even small changes in U.S. trade policy ripple through factories, supply chains, and sales counters. Moreover, a predictable tariff rate helps brands plan launches, allocate inventory, and maintain prices with less disruption. As a result, the new agreement is widely viewed as a needed reset.
Prices, Supply, and a Costly Year
Tariff turbulence collided with other pressures in 2024. The Swiss franc stayed strong, and gold prices touched record highs. Consequently, production and component costs rose across the board. To offset the 39 percent levy, several leading brands adjusted U.S. price lists during the year. Collectors saw increases from household names like Rolex, Omega, and Patek Philippe.
Additionally, many companies accelerated shipments to the U.S. before higher duties took hold. That strategy cushioned the first impact of the tariff spike, yet it also strained logistics. Retailers had to manage larger deliveries while adjusting tags in real time. However, the new 15 percent rate should ease the most acute price pressure. It may not reverse every increase, but it reduces the need for further broad hikes. Furthermore, the change could restore a steadier flow of inventory to key retailers.
