The Trump administration imposed 39% tariffs on Swiss goods imported into the United States, coming into effect on August 7. The surprisingly high levy, which compares to 15% tariffs on goods from other watchmaking countries and regions such as the European Union and Japan, has put Swiss watch brands at a disadvantage and threatened sales demand and profit levels for the biggest players.
Many of the top brands, including Rolex, Omega, Blancpain, Patek Philippe, and Audemars Piguet, have already raised prices in the U.S. between 3% and 10% in response to the initial tariff levels on Swiss goods announced in April. An initial tariff level of 31% was later reduced to 10% before the shock increase to 39% last month. More brand price increases are expected if the tariffs stay in place at the current levels.