United States to Reduce Import Tariffs on Swiss Watches to 15 Percent
The United States is set to lower import tariffs on Swiss watches to 15 percent, a move expected to ease pressure on the industry and bring American duties in line with those applied to other major watch producing regions such as Japan and the European Union. The decision follows months of uncertainty triggered by the introduction of steep tariffs earlier in the year.
Background: The Impact of the 39 Percent Tariff
Tariffs of 39 percent imposed in August placed immediate strain on Swiss manufacturers. Many brands were forced to raise retail prices in the American market, with adjustments in some cases reaching 15 percent. The timing was particularly unfortunate. The Swiss franc appreciated sharply against the US dollar, eroding margins and competitiveness, while the price of gold, a key material for high end watchmaking, climbed to an unprecedented level above four thousand dollars per ounce.
The situation fuelled concern across the industry, prompting leading figures to seek political engagement in an effort to stabilise conditions.
High Level Discussions in Washington
A recent delegation of senior Swiss executives travelled to Washington for discussions that ultimately paved the way for the new tariff structure. Participants included the chief executive of Rolex, Jean Frédéric Dufour, the Richemont chairman Johann Rupert and representatives of Partners Group, the investment firm that holds a controlling stake in Breitling.
The conversations resulted in an agreement to reduce the tariff burden to 15 percent, easing the shock created by the earlier policy. According to the Federation of the Swiss Watch Industry, the revised rate is expected to restore a measure of predictability for a sector that relies heavily on the US market, which accounts for roughly a fifth of all Swiss watch exports.
Aligning with Global Trade Conditions
Once fully implemented, the adjusted tariff rate will place Switzerland on an equivalent footing with other major exporters to the United States. Industry analysts view this alignment as essential for preserving competitive balance across the global watch market.
The change represents a significant step towards stabilising transatlantic trade conditions and is likely to be welcomed by manufacturers and retailers alike as they recalibrate pricing strategies for the year ahead.
