The steep tariffs in the United States should be severely affected by Switzerland, and its marking is difficult after rest by 31%.
Switzerland, which is known to have remained neutral in most issues, including European integration, faces one of the highest seat on the continent. Its main business The lobby is described The levies are “harmful and unfounded”.
From cheese to chocolate and medicines, all the largest exports of Switzerland collided with shock waves after the announcement of President Donald Trump last week. The United States is the largest export market in Switzerland for hours, making their trade relations decisive for the country.
In 2024, the cost of the Swiss clock exports to the States grew by 5% up to 4.3 billion CHF ($ 5.2 billion).
The Chinese market requirement is also gradually declining from the COVID-19 pandemic, so the clock companies turned to the Americans to nourish their sales.
Richemont, Swiss company standing for IWC and Jaeger-Lecoultre this trend in their sales last year. In addition, because of the history and heritage of these brands, watches cannot simply cancel their production from Switzerland because there is so much industry experience in the center.
The largest companies that are likely to go to hiking for exquisite high-end hours, but brands served by mid-level consumer are more trouble, Pier-Yves Dzenz, Professor of Business History at Osaka University and Specialist Happiness.
“Exclusive luxury brands such as Patek Philippe, Audemars Piguet and Richard Mille have little worry. They can somewhat reduce their (very profitable) profitability and transfer part of the sale increase,” the Donse said. “On the other hand, it is a blow for mid -level and exclusive luxury brands for which the sale price is a decisive factor. I think, in particular, Swatch Group brands, a company with great difficulty.”
Swatch has brands on different price ranges – from Tissot to the Swatch and Omega brand of the same name. It feels from falling demand in Chinese, with it clean sale Last year, sliding 14%. When tariffs have hit, some of its hours can become much more expensive by pulling them out of the usual US buyer.
Last time was a similar degree of tariffs was almost 100 years so when the smothest blow came up. The tariffs are believed to have caused great depression in the early 1930s. At the time Switzerland boycotted US products To resist Measures.
“This has led to a significant decrease in international trade and adversely affected the industries that depend on exports and imports, including the watch sector,” said Paul Altier, CEO of Watches Watch, a lifelong Watch market and a pre-delivered Rolex Watch dealer.
He expects the demand for pre -set up hours – the area, which often attracts the clock collectors – as a result of tariffs.
“If the new clock market slows down at the weight of the tariffs, the owned market may become a rescue boat. Experienced buyers who are looking for value- and the presence-often turn to Sevenhand, and it can remake the luxurious watches that we have not seen before,” Altier said.
At the same time, while the clock market adapts to the new volatility, the CEO of the next SEVENHAND platform is already beginning to see changes in purchases.
“One customer agreed to sell me Rolex GMT -Master II for 19 350 dollars, and then refused the last minute, saying that he wanted to wait a few weeks because his watch” could cost another 10-20%”. This is additional prices from $ 2000 to $ 4000 per night,” Managed WatchGuys.com.
Donzé, who recently wrote a book about Rolex, is not sure that the Secondhand market will be a great winner, as it is always known to sell hours above market rates.
“In the secondary market, the clock is or much more expensive than the new (because of very high demand, but for a handful of brands and models such as Rolex, AP and Patek), or much cheaper (for most brands, because demand for models are very low),” he said in the email.
No matter what clock manufacturers respond, Switzerland has a lot on the line. President Karin Keller said her government plans to respond after Trump’s announcement of tariffs.
“The country’s long-term economic interests are of paramount importance. Complete international law and free trade remain the main values,” she said in A, Message on x.
Originally this story was presented on Fortune.com
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2025-04-07 09:41:00
Prarthana Prakash
