Swiss Watchmakers Reel As US President Trump Imposes 31% Import Tariff On Switzerland

As the world’s top watch brands gathered in Geneva for Watches and Wonders, unveiling their latest creations to eager collectors and retailers, an unexpected storm cloud darkened the festivities. U.S. President Donald Trump announced sweeping tariffs on imports, with Swiss watches among the hardest hit. A 31% tariff on Swiss timepieces sent shockwaves through an industry that has relied heavily on the U.S. market in recent years.

In a speech on Wednesday, Trump announced sweeping tariffs on more than 100 countries and trading partners, including China, India, and nations in the European Union. Trump showed a chart listing a levy of 31% on goods imported to the US from Switzerland.

Switzerland is home to several heritage brands like Rolex, Patek Philippe, and Vacheron Constantin as well as high-volume brands such as Longines and Tissot- this development could be a game-changer. The U.S. overtook China as the largest market for Swiss watches in 2021, and last year, while exports to the U.S. grew 5%, shipments to China fell 25%. The American appetite for luxury timepieces has helped steady the industry amid global economic uncertainty, making Trump’s tariff announcement all the more alarming.

Trump said tariffs of 10% would be imposed on all trading partners while "'reciprocal" double-digit tariffs would be levied against a group of individual nations, including Switzerland. In comparison, Trump said the US would slap tariffs of 34% on Chinese goods, 20% on European products, 24% on Japan, and 10% on the UK. US stock market futures tumbled in response to the announcement.

The US has been the top destination for Swiss watches since overtaking China in 2021, and a 31% tariff would deliver a potentially shocking blow to an industry that has relied on US consumers following a post-pandemic global slump in demand. Swiss watch exports to the US rose 5% by value in 2024 while shipments to China fell 25% in a year that saw overall wholesale exports decline 2.8% to about CHF 26 billion.

Switzerland's President Karin Keller-Sutter said her government acknowledged the U.S. tariff decisions and would quickly decide its next steps. "The country's long-term economic interests are paramount. Adherence to international law and free trade remain core values," Keller-Sutter said in a post on social media site X.