A sharp rise in import tariffs is set to make luxury Swiss goods — especially high-end watches — significantly more expensive for American consumers. As of August 7, 2025, the U.S. has imposed a 39% tariff on all imports from Switzerland, following the collapse of trade talks between the two nations.
The new tariff, one of the highest under President Trump’s revamped reciprocal trade strategy, directly targets nations with large trade surpluses against the U.S. In Switzerland’s case, a $38 billion goods-trade gap was cited as justification. The move marks a dramatic increase from the 15% tariff extended to countries like Japan and members of the European Union that reached agreements ahead of the August deadline.
Luxury Watch Market Feels the Heat
Switzerland’s world-renowned watch industry is now under pressure. Brands like Rolex, Patek Philippe, and Audemars Piguet must now decide whether to absorb the cost or pass it on to American buyers. With over $6 billion worth of Swiss watches imported to the U.S. in 2024 alone, the impact could be swift and widespread.
Some retailers have already begun hiking prices by 10–15%, with the possibility of further increases to offset the full 39% tariff. Smaller independent watchmakers, many of whom rely on the U.S. as a key market, could struggle to stay competitive — a shift that may drive collectors toward the booming pre-owned and secondary markets.
Part of a Broader Trade Realignment
This move is just one element of a broader trade policy overhaul launched in April 2025. The structure introduces a baseline 10% tariff on all imports, with higher rates for countries lacking trade agreements or contributing to significant trade imbalances.
Canada’s tariff rate, for instance, was recently raised from 25% to 35% amid disputes over drug enforcement cooperation. Meanwhile, countries like India and Syria are now subject to import duties as high as 41%.
As U.S. trade policy becomes more aggressive, American consumers may soon see price hikes across a wide range of imported goods — starting with the luxury watch on their wrist.
