The very slope US tariffs are scheduled to strike Switzerland and the watchmaking industry hardly after imposing 31 %.

Switzerland, which has remained famous neutral in most matters, including European integration, is facing one of the highest drawings on the continent. The best work Lobby description The fees are “harmful and unjustified”.

From cheese to chocolate and medicines, all Switzerland exports faced the largest shock in the wake of President Donald Trump’s announcement last week. The United States is the largest export market in Switzerland, which makes its business decisive to the country.

In 2024, the value of the Swiss watches is issued to the states 5 % rose To 4.3 billion Swiss francs ($ 5.2 billion).

The demand for the Chinese market has also gradually decreased since the Covid-19s, so viewing companies have turned to Americans to feed their sales.

Richmont, the Swiss company behind IWC and Jaeger-LeCoultre, monitored, This trend In its sales last year. In addition, due to the history and heritage of these brands, watchmakers cannot simply transfer their production away from Switzerland because many industry experience concentrates there.

The largest watches companies are likely to walk long distances in wonderful wonderful watches, but brands that meet the consumer needs in the middle of the level more than trouble. luck.

“Exclusive luxury brands like Patek Philippe, Audemars Piguet and Richard Mille have no worrying. They cannot reduce their margins (somewhat profitable) and pass part of the increase in the sale price.” “On the other hand, it is a blow to medium or exclusive luxury brands, which the selling price is a decisive factor. I am particularly thinking about the brands of the Swatch Group group, which is a great difficult company.”

Swatch has trademarks across different price ranges – from Tissot to her Swatch brand and Omega. He was reeling from the low Chinese demand Net sales 14 % decreased last year. When definitions collide, some of their hours may become much more expensive, making them far from the reach of ordinary American shoppers.

The last time a similar degree of definitions was imposed 100 years old Since the SMOOT-HWLYY Law began. It is believed that the definitions have raised the great depression in the early thirties. At that time, SwitzerlandAmerican products boycottedTo oppose Trainers.

“This led to a significant decrease in international trade and the affected industries have negatively affected exports and imports, including the watch sector,” said Paul Altere, CEO of Bob and Ters, a certified monitoring market and Rolex monitoring dealer.

He expects to seek pre -watches – an area that attracts watches often to decline as a result of definitions.

“If the new watch market slows down under the weight of customs duties, the pre-owned market may become a salvation boat. Smart buyers who are looking for value-and the availability-will quickly be to the negative cost, and the luxury watch scene may be reinforced in ways that we have not seen before.”

Meanwhile, while the monitoring market adapts to the new fluctuations, the CEO of another used platform began to see changes in shopping behavior.

“One of the customers agreed to sell Lee Rolex GMT-Master II ‘Pepsi’ for $ 19,350, then fell at the last minute, and told me that he wanted to wait a few weeks because his watch” may be equal to another 10-20 %. “This ranges from $ 2000 to $ 4,000 in the added value overnight … only on speculation.” Watchguys.com.

Donzé, who recently composed a book on Rolex, is not sure that the used Marketplace will be a great winner because it is always known to sell hours over market prices.

He said in an email: “In the secondary market, the watches are either much more expensive than new hours (due to the high demand, but for a few brands and models, such as Rolex, AP and Patek) or much cheaper (for most brands, because the demand for used models is very low),” he said in an email.

Regardless of the way the watchmakers respond, Switzerland has a lot on the line. President Karen Keeler Street said her government was planning to respond after Trump announced the definitions.

“The long -term economic interests in the country are very important. Adherence to international law and free trade remains basic values.” After x.

This story was originally shown on Fortune.com

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2025-04-07 09:41:00