Federal President of Switzerland embarks on trip to Washington, D.C.
The United States has imposed a 39% tariff on Swiss imports, including watches, effective from early August 2025. This move comes as part of a broader trade policy under Executive Order 14257, which aims to address trade imbalances and national security concerns by adjusting reciprocal tariff rates on certain trading partners.
The tariff increase has significant implications for the Swiss watch industry, a key export sector for the country. Already struggling with a global demand downturn post-pandemic, rising Swiss franc value, and increasing production costs, the hike from 10% to 39% creates a substantial competitive disadvantage compared to other watch-exporting countries such as Japan and Germany, which face only 15% tariffs.
Swiss President Karin Keller-Sutter and Economy Minister Guy Parmelin recently traveled to the USA in a bid to prevent the 39% customs duty on Swiss exports. Despite their efforts, the US administration did not retract or lower the tariffs before they took effect.
The Swiss government is determined to continue negotiations with the aim of a trade agreement, even if beyond the announced entry into force of the tariffs on Thursday. They aim to present the USA with an "even more attractive offer" to avert the high surcharges.
It's worth noting that Swiss pharmaceuticals are exempt from these tariffs, but most other Swiss goods are affected. The high tariffs would put Switzerland at a significant disadvantage compared to other trading partners with similar economic profiles, such as EU member states, Britain, and Japan.
US Trade Representative Jamieson Greer warned that no changes to the tariffs are expected in the coming days. Despite this, Switzerland is aiming to maintain dynamic economic relations with the USA. The tariffs would mark one of the highest the USA has imposed on numerous trading partners as part of its trade conflict.
[1] Swiss Info. (2025). US to impose 39% tariff on Swiss watches. [online] Available at: https://www.swissinfo.ch/eng/us-to-impose-39-tariff-on-swiss-watches/46862772
[2] Reuters. (2025). Swiss watch industry braces for 39% U.S. tariff hike. [online] Available at: https://www.reuters.com/business/retail-consumer/swiss-watch-industry-braces-39-us-tariff-hike-2025-07-29/
[3] CNN Business. (2025). Switzerland's watch industry faces 39% US tariffs. [online] Available at: https://www.cnn.com/2025/07/29/business/swiss-watches-us-tariffs/index.html
- The escalating 39% tariff on Swiss imports, as part of the broader Executive Order 14257, could potentially alter the employment policy and community policy within the Swiss watch industry, as firms may need to cut costs or adjust their hiring practices to remain competitive.
- As negotiations continue between Switzerland and the US, finance and business sectors, along with politics and general news, are closely monitoring the impact of the 39% tariff on Swiss watch exports, as well as the potential for a trade agreement that might alleviate rising economic concerns.
