A trade deal could alleviate pressure on the Swiss Watch Industry

Swiss Trade Deal Talks Offer Hope for Watchmakers Hit by U.S. Tariffs

Switzerland is edging closer to a U.S. trade deal following positive bilateral talks that could ease pressure on the Swiss watch industry. These discussions come as Swiss brands face steep tariffs that have disrupted exports to their largest market.

U.S. Recognizes Swiss Progress in Trade Negotiations

During a press conference in Geneva, U.S. Treasury Secretary Scott Bessent confirmed Switzerland is now among the top candidates for a U.S. trade deal. He highlighted the country’s fast progress compared to the European Union, saying:

“The U.K. and Switzerland have moved to the front of the queue for trade deals… We value that.”

The announcement came just as the U.S. and China agreed to reduce tariffs, following successful negotiations hosted in neutral Switzerland.

How Much Are Swiss Watchmakers Impacted by Tariffs?

Swiss watch exports to the U.S. totaled about CHF 4.4 billion in 2024, making the U.S. the biggest single market for Swiss timepieces. The initial 31% tariff introduced on April 2 severely affected the $50 billion industry. Although the full tariff was paused for 90 days, a blanket 10% tariff remains in place.

Tariff Cuts with China Could Also Ease Watch Costs

At the same Geneva event, the U.S. announced it would reduce tariffs on Chinese goods from 145% to 30%, while China lowered its tariffs on U.S. imports from 125% to 10%. These reductions will benefit Swiss watchmakers who produce watches or components in China, including bracelets and accessories.

As a result, global markets rallied, with stock futures rising and the U.S. dollar gaining against safe-haven currencies like the Swiss franc.

This pricing pressure, combined with a strong Swiss franc and rising gold costs, forced brands like Rolex, Tudor, Omega, and Audemars Piguet to increase prices in the U.S.

How Big Is the Trade Opportunity for Switzerland?

Switzerland is one of the six largest investors in the U.S. Bessent emphasized this strong relationship and expressed interest in importing Switzerland’s successful trade training programs to help revive U.S. manufacturing.

“We believe the U.S. has a lot to learn from Switzerland,” Bessent added.

Swiss Officials Move Quickly on Proposal

Swiss Finance Minister and current president Karin Keller-Sutter confirmed Switzerland will submit a formal trade proposal to the U.S. within two weeks. While she cautioned that a signed deal is still pending, she expressed optimism.

“We can say that it’s encouraging the Americans want to speed up the process,” she noted.