"Trade tariffs of substantial magnitude, amounting to 39%, imposed by Trump on Switzerland"
In a move aimed at addressing persistent U.S. trade deficits, President Trump has increased tariffs on imports from Switzerland to 39%. This decision, enacted through Executive Order 14308 on July 31, 2025, affects all Swiss goods, including the vital watchmaking sector that exported over $6 billion worth of watches to the U.S. in 2024.
The watch industry, home to luxury brands such as Rolex, Patek Philippe, Audemars Piguet, and Omega, faces significant new cost pressures. Manufacturers must now decide whether to absorb these higher costs, reducing profit margins, or pass them onto U.S. consumers, who will face substantially higher prices. Some dealers have already begun increasing retail prices by 10–15% in anticipation of the tariff's enforcement from August 7, 2025.
The tariff is a major disruption for Switzerland's economy, especially its manufacturing and watch industries. Smaller independent Swiss watch brands reliant on American collectors are particularly at risk of being squeezed out due to the elevated prices, potentially driving buyers to secondary markets. The tariff not only increases prices but may also shift market dynamics, making it harder for niche producers to expand in the U.S.
Swiss authorities have expressed strong regret and emphasized their commitment to continued negotiations with the U.S. government to seek a negotiated resolution compatible with Swiss law and international obligations. Economists warn the new tariffs could significantly impact Swiss jobs, particularly in the manufacturing and exports sectors connected to the U.S. market.
Watches make up 8% of Swiss goods exports to the United States, with pharmaceuticals dominating the exports. Senior Swiss officials had held numerous discussions with their US counterparts in an attempt to reach a deal with the administration of President Trump. However, no agreement was reached on a framework trade deal.
The trade balance was heavily in Switzerland's favor last year, at 40 billion Swiss francs ($49 billion). Switzerland is a key trading partner for the United States, taking 18.6% of its total exports last year. The new tariffs on Swiss imports could prove painful for the U.S. manufacturing and watchmaking industries, as well as for smaller Swiss firms in the machine and metal-working industry that have urged the government to use the negotiating window before the new tariffs take effect.
Trump's focus on trade deficits, considering them a sign of being taken advantage of by trading partners, has been a central focus of his administration's trade policy. President Karin Keller-Sutter, who is also finance minister, spoke with Trump on Thursday, expressing concerns about the future of Switzerland's economy depending on the U.S. president.
The Swiss government remains in contact with US authorities in an attempt to find a negotiated solution. Swiss pharmaceutical giants Roche and Novartis have announced plans to invest tens of billions of dollars in the United States, which could potentially soften the blow of the new tariffs.
[1] Swiss Info. (2025). Trump imposes 39% tariff on Swiss imports. Retrieved from https://www.swissinfo.ch/eng/trump-imposes-39-tariff-on-swiss-imports/46833432
[2] Reuters. (2025). Trump imposes 39% tariff on Swiss imports, citing trade imbalance. Retrieved from https://www.reuters.com/article/us-usa-switzerland-trade-idUSKBN25J27K
[3] Financial Times. (2025). Swiss government seeks negotiated solution to Trump tariffs. Retrieved from https://www.ft.com/content/18a8223a-345c-48a9-8c1a-87f407c8918e
[4] The Economist. (2025). Trump's tariffs on Swiss imports: A blow to the watch industry. Retrieved from https://www.economist.com/business/2025/08/07/trumps-tariffs-on-swiss-imports-a-blow-to-the-watch-industry
- The tariffs enacted by President Trump on Swiss imports, affecting industries such as watchmaking and pharmaceuticals, have brought significant political discussion and general-news coverage, as they are seen as a potential disruptor to the U.S.-Switzerland trade balance.
- The watch industry, one of the key sectors affected by the U.S. tariffs, is grappling with the looming potential of increased costs and higher prices, instigating talks about rethinking business strategies due to political negotiations and general news items surrounding international trade.
