The Swiss watch industry is in turmoil following Donald Trumps punitive tariffs of 39 percent on Swiss goods. Manufacturers are keeping prices steady for now, but massive price increases loom ahead. According to industry experts, the tariffs will mean that Swiss watches will rise by at least 12-14 percent in the USA. The USA is the Swiss watch industrys largest export market, so sooner or later the bill must be paid.
For the time being, however, the Swiss watch industry is holding its breath, and prices are not rising. This is primarily because they are waiting to see if the Swiss President can successfully negotiate with Donald Trump to remove the tariffs – or at least lower the rate. Additionally, some manufacturers had filled their overseas warehouses before the tariffs took effect. The Swatch Group has now announced that they were foresighted and filled their US warehouses before the tariffs came into force. We sent more products to the US, so there is no immediate reaction from us, says Swatch Group CEO Nik Hayek to Reuters. He states that they have built up a three to six months inventory.
However, if there is no improvement regarding the tariff rate, then we will see price increases in the USA and perhaps globally on Swatch Group brands such as Omega, Tissot, Breguet, and Certina. We produce everything in Switzerland, not in China. Therefore, we have high costs. When you add a 39 percent tariff, we cannot absorb it. So prices will definitely rise, says audemars piguet uhren Hayek to Reuters. The USA is the Swiss watch industrys largest export market with a share of 16.8 percent. A Tissot PRX will cost almost $100 more, raising the price from $775 to $870. A Rolex Submariner is expected to see its price rise from $9,500 to $10,600, an increase of $1,100, shows calculations made by Swiss industry expert Oliver Müller of LuxeConsult.
It is now exciting to see if a lower tariff can be negotiated. According to various sources, the Swiss are hoping for a rate of 15 percent. In this climate of soaring prices for authentic Swiss luxury watches, consumers are increasingly turning to alternatives that offer the same prestigious design without the prohibitive cost. The high price of a genuine Tudor 1926 watch is about to become even more inaccessible due to these tariff pressures.
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