Tariffs Fall, Confidence Returns: What Switzerland’s Breakthrough With The U.S. Means for The Watch World

The Swiss watch industry finally exhaled as the U.S. confirmed that the steep 39% tariff on Swiss watches would be reduced to 15%. For months, this duty had cast a long shadow over the industry, unsettling brands that depend on the U.S. a market that accounts for nearly a fifth of all Swiss watch exports. Some maisons pushed shipments ahead of the tariff, others raised prices to protect margins, and retailers were left to manage anxious clients in an uncertain environment. The rollback brings the first real sense of stability the sector has felt since August, restoring clarity at a moment when the global market is already navigating softer demand and shifting consumer behaviour.

The U.S. Market Reopens Its Doors

With the tariff cut, the U.S. once again becomes a predictable space for Swiss watches. While prices that were already adjusted upward may not drop, the pressure on future increases eases dramatically. Instead of emergency price corrections, brands can return to calmer, more strategic planning aligning prices globally, forecasting launches with confidence, and re-energising their U.S. retail networks. For collectors, this means a steadier environment heading into 2026, with fewer distortions and a clearer view of upcoming releases.

A Rare Moment: Watch CEOs in the Diplomatic Arena

Perhaps the most fascinating layer of this development is how directly the watch industry participated in the dialogue. In the days leading up to the announcement, senior Swiss business leaders visited the White House including Rolex CEO Jean-Frédéric Dufour and Richemont Chairman Johann Rupert. Their involvement signalled just how deeply the tariff shock had rattled the sector. What was framed as a meeting to strengthen economic ties created what Swiss officials later described as a “new dynamic,” helping accelerate an agreement that benefits both nations. Luxury watchmaking, usually discreet and apolitical, momentarily became part of international negotiations a reminder of how central the industry is to Swiss exports and identity.

Part of the understanding includes Swiss companies in pharmaceuticals and gold refining planning to build facilities in the U.S., strengthening economic interdependence. Though not directly linked to watches, these sectors form part of Switzerland’s broader export landscape. Gold refining, in particular, touches the watch world through precious-metal sourcing. Stronger ties reduce the likelihood of future disruptive tariffs and give Switzerland a more grounded presence in the American industrial ecosystem.

A Ripple Effect Across Brands and Retailers

Across the watch world, the response has been one of relief. Independent brands, niche maisons and volume players all feel the impact. For many, the sudden jump to a 39% duty had created impossible math: retail prices would have become uncompetitive, distributor margins would have shrunk, and consumer behaviour would have shifted toward grey-market alternatives. By easing the tariff, the U.S. market becomes fertile ground again for ambition. Retailers can plan inventories without uncertainty. Maison-led events, collector dinners, U.S.-exclusive editions and new boutique openings all paused during the tariff turbulence can start moving again. The timing couldn’t be better. With the New Year approaching and brands preparing major anniversaries, innovations and expansions, the tariff reduction gives the industry the stability it needs to begin the new year on a positive note.