Swiss watchmaking hard hit by American taxes

Forecasts vary according to brands and ranges.Keystone

Customs duties inflicted by Donald Trump on Switzerland will severely impact the watch industry. Meanwhile, The United States is by far the first outlet for the branch. Additionally, Meanwhile, The shock is all the greater.

In the first half of 2025, watchmaking exports reached a value of 2.56 billion francs in the United States, throughout the year, KPMG estimates them about 5 billion.

By way of comparison. swiss watchmaking hard hit american Moreover, exports to Japan rose to 932 million over six months, those to China 894 million and to Hong Kong 824 million.

In the watch sector, Swatch and Rolex will be more affected than Richemont. The latter also produces jewelry and other luxury products. Moreover, Watches are certainly made in Switzerland, while jewelry items are mainly in France and Italy.

Products cheap more affected – Swiss watchmaking hard hit american

According to Jefferies experts, almost 10% of Richemont’s exports will be affected by customs taxes on Switzerland. High -end products such as Cartier, VCA, Vacheron Constantin or IWC should suffer less than cheaper products.

With 24% of Swatch exports, China and Hong Kong represent its first market, according to the managing director Nick Hayek. However, the United States is getting swiss watchmaking hard hit american closer to China and has experienced two-digit growth in the first half. Jefferies estimates the share of the United States at around 20% in swatch exports. Omega is well represented, but the big part of sales concerns more advantageous products.

According to Oddo BHF. taxes should weigh roughly 5 to 10% on the Swatch Ebit this year and less than 5% on that of Richemont.

Optimism d’Hayek

Watchmakers make “swiss made” their main sale argument. Unlike other sections of the industry. it cannot be a question of simply relocating production, especially it would be difficult to find the workforce qualified abroad.

It remains to be hoped that the argument formerly advanced by Mr. Hayek to AWP is confirmed: Customs taxes on unique products and swiss watchmaking hard hit american people want to have are not a problem. We have already observed it in the past. (ATS/VZ)

The German Sunday press reveals the cold tone of a call between Karin Keller-Sutter and Donald Trump.

Karin Keller-Sutter a eu – off mandate of the Federal Council – A telephone conversation with Donald Trump on July 31. According to the Sunday newspaperTrump perceived the Swiss as “moralizing”. Referring to an article by the Bloomberg news agency. Sunday view writes that the American president felt offended by the fact that his counterpart has offered nothing to modify the trade deficit.