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U.S. Cuts Tariffs on Swiss Watches — What’s Changing
The United States Government and Switzerland have struck a new trade deal reducing U.S. import tariffs on Swiss goods — including luxury watches — from 39% down to 15%.
The agreement, announced mid-November 2025, is part of a broader package in which Swiss companies pledged roughly US$200 billion of investment into the U.S. economy by 2028.
According to Swiss officials, the new lower rates could take effect in “a few weeks,” though no firm date has yet been given.
Why This Tariff Cut Matters
Sharp fall in Swiss watch exports after 39% tariff
• In August 2025, U.S. authorities imposed a 39% tariff on most Swiss imports — including watches — the highest levy imposed on any Western ally in recent memory.
• As a result, in September 2025 Swiss watch exports to the U.S. plunged by around 56% compared with the previous year.
• Many brands rushed to ship inventories ahead of the tariff — a surge in July — but demand collapsed the following month once the tariff kicked in.
Relief for watchmakers, retailers and consumers
• For Swiss watchmakers — from premium houses to luxury brands — the tariff cut comes as a much-needed reprieve.
• U.S. retailers and customers should see more stable prices, or at least fewer sudden hikes, as the 15% rate is far more manageable than 39%. Analysts in the trade describe the move as “a major win” for the industry.
• The new rate also brings Swiss goods in line with tariffs applied to imports from many other European countries — reducing the competitive disadvantage Swiss products faced.
A broader trade and investment deal
• The tariff reduction is only one part of the agreement: Switzerland committed to invest heavily in the U.S. across sectors such as manufacturing, infrastructure and medical devices.
• The deal highlights how trade policy can be tied to foreign investment and broader economic cooperation.
What Still Isn’t Clear
• The exact date when the 15% tariff rate becomes operational in U.S. customs systems hasn’t been confirmed; officials say it may take “several weeks.”
• Some critics — particularly in Switzerland — have raised concerns about how the deal was negotiated, alleging undue influence by luxury-watch lobbyists and major industry players.
• While this reduces a major burden, 15% remains substantially higher than a zero-tariff regime, and Swiss exporters may still not be fully competitive against duty-free or low-tariff rivals.
What This Means for the Future — and Watch Buyers
• Swiss watch brands currently operating in or exporting to the U.S. can breathe easier: price volatility is likely to ease. This could encourage shipments, restocking, and possibly lower retail prices over the next months.
• For U.S. consumers and collectors previously spooked by high import costs, there may be new opportunities — especially if watchmakers and retailers pass the tariff savings on.
• For the broader Swiss economy, this deal may signal a shift toward more stable, mutually beneficial trade relationships — particularly if planned investments materialise.
Attached is a news article regarding the US to reduce tariffs of Swiss watches
Article written and configured by Christopher Stanley
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