Swiss Watchmakers Hit by U.S. Tariff Turmoil

Swiss watch retailers are reeling after the U.S. announced new tariffs on Swiss imports. This move affects high-end watch sales, critical to the Swiss economy, raising prices and causing uncertainty. Industry leaders are concerned about declining U.S. sales, further hitting Swiss watchmakers already facing challenges in 2024.

Swiss watch sellers, including Sacha Davidoff in Geneva, are grappling with the implications of newly announced U.S. tariffs. These import duties include a substantial 31% levy on Swiss goods, resulting in considerable strain for the luxury sector.

The impact of these tariffs is rippling through the European luxury market, causing shares in major companies to tumble. Davidoff, whose business heavily relies on U.S. sales, now faces the daunting prospect of significantly increased prices, which are likely to deter American clients.

Industry insiders gathered at a Geneva conference expressed anxiety about the future. With a critical reliance on the U.S. as a primary export market and ongoing declines in other key markets like China, the outlook for Swiss watchmakers appears uncertain.

(With inputs from agencies.)