For the Swiss watch industry, the tariffs announced by the USA are a heavy blow. Because the United States are the most important sales market for the industry – by far. No wonder the shock sits deep.
The United States has occupied Switzerland with tariffs of 39 percent. This is the highest sentence in Europe. The country has thus been imposed on the highest sentence to Brazil, Syria, Laos and Myanmar. And this although Switzerland itself does not raise tariffs for industrial products.
Annual exports of around 5 billion to the USA
In the first half of 2025, Switzerland exported watches worth 2.56 billion francs to the USA. According to the KPMG, this should be around CHF 5 billion.
For comparison: to Japan, watches were exported from January to June CHF 932 million, China for CHF 894 and Hong Kong for CHF 824 million.
It should not be forgotten that the once largest sales market – the Greater China area – has been weakening for a long time and does not seem to be in sight. The industry also affects this.
Little surprising that the Swiss watch association FH, now announced, sees the competitiveness of Swiss companies and Swiss products in danger and describes the tariffs as incomprehensible. Since Switzerland has abolished all tariffs to imported industrial products, it is unjustified to speak of a lack of mutuality on the part of Switzerland.
Richemont less affected than Swatch
The Swatch and Rolex, focused on watches, should be more affected by the tariffs than the wider Richemont. In addition to watches, Richemont also produces jewelry and other luxury goods. Richemont also produces the clocks in Switzerland, but in the core business of jewelry is produced especially in France and Italy.
According to the Broker Jefferies estimates, almost 10 percent of sales are likely to be affected by the US tariffs in Richemont. However, the high -priced brands Cartier, VCA, Vacheron Constantin or IWC should have a stronger pricing than cheaper products.
With 24 percent, according to Swatch boss Nick Hayek, the area of China is still the largest sales market for the company. The United States will soon come to China "up to". The United States grown in two digits in the first half of 2025.
Jefferies estimates Swatch’s US sales share to just under a fifth. The Omega brand in the USA has a particularly strong tensile force. But the majority of sales take over cheaper watches.
Oddo BHF estimates that the influence of the tariffs on Swatch’s annual bit is roughly valued 5 to 10 percent and less than 5 percent in Richemont.
But there is another hurdle. The Swiss clock’s nimbus lives from the fact that it will also be produced in Switzerland. As with other industrial products, production cannot be easily relocated abroad. In addition, the corresponding specialists can hardly be found there. "And certainly not at all"says a dealer.
It is to be hoped that Hayek will keep right with his previously made statement: "Customs for products that are unique and which people want are not a problem." That showed the past.