Swizterland faced surprise and opposition from the Federal Council and economy following a 39% duty announcement from Washington regarding Swiss goods.
The United States has imposed a 39% tariff on all imports from Switzerland, marking one of the highest tariffs globally. This move, announced by President Donald Trump, applies particularly to Swiss exports such as clocks and watches, a sector whose products were worth over $6 billion in U.S. imports in 2024.
The Swiss government has expressed "great regret" over the tariff, noting the rate differs significantly from prior draft negotiations that had raised hopes for a more favorable agreement. The tariff is part of a broader trade strategy aimed at addressing America's trade deficits and concerns about insufficient reciprocity and alignment with U.S. economic and national security interests.
The impact on the Swiss economy, especially its watchmaking industry, is significant. Major brands like Rolex, Patek Philippe, Audemars Piguet, and Omega will face increased costs, which may be transferred to U.S. retailers and consumers or reduce profit margins. This imposes a substantial trade friction layer, especially deleterious to smaller independent brands seeking to grow in the U.S. market. The tariff could exacerbate challenges following pandemic slowdowns, inflation, and geopolitical disruptions faced by the industry.
For U.S. collectors, retailers, and distributors, the tariff's 7-day implementation window after the executive order's signing spurs attempts to accelerate imports before the tariff takes effect, but these options are rapidly closing.
In response, the Federal Council of Switzerland is likely to continue negotiations to avoid the imposed tariff. Economiesuisse, a Swiss business organization, has described the proposed tariff as a very serious burden on the Swiss economy.
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The tariff threatens to disrupt Swiss exports, weaken a key economic sector, and exacerbate trade tensions between the U.S. and Switzerland. President Trump has refused to accept the agreed-upon trade deal with Switzerland, raising concerns about the future of bilateral trade relations.
Politics and legislation are increasingly central to the U.S.-Swiss trade relationship, as President Trump's decision to impose a 39% tariff on Swiss imports provokes calls for policy-and-legislation adjustments. Major brands in Switzerland, such as Rolex and Patek Philippe, face heightened costs, potentially leading to increased retail prices, reduced profit margins, or both. In response, the Swiss Federal Council aims to continue negotiations to possibly revoke the tariff, while Economiesuisse has termed the proposed tariff a significant burden on the Swiss economy.
