Today Donald Trump announced another round of painful tariffs on global imports to the USA, including a surprise additional 8% on Switzerland on top of their already wince-inducing 31%. But what does a 39% tariff on Swiss watches mean for the brands here in the UK?
As is the case with anything like this, there’s a lot of speculation and we don’t yet know what the full impact will be, especially as Swiss markets are closed for the holidays. But what we do know is that Watches of Switzerland has already seen a 7% drop in their share price, a pretty substantial amount. Given the group’s expansion into the States, that’s not too much of a surprise. It’s going to be much harder to sell over there.
As for brands based here, you might assume that they’d be in a good place, given the UK has a 10% rather than 39% tariff. But that’s not really the case. If a British brand makes their watch in Switzerland (or China for that matter) and ships to the US, it still counts as a Swiss (or Chinese) import according to US Customs. That means they’ll be hit just as hard, whether they ship direct or not.
With the US the single biggest market for British watches outside of the UK, that’s brutal. It won’t affect some watchmakers that build most of their value into the watch here in the UK – cases, dials, etc. – but given ‘designed in Britain, made in Switzerland’ defines our homegrown industry, that’s not many.
As for you as a British watch lover, it’s a bit of a mixed bag. There’s a good chance that most brands will up prices here slightly to even things out globally, so brace yourselves for a bit of a sting. At the same time however, there is a silver lining if your local AD’s been telling you they’re out of stock as brands shift watches around where they’re needed. Selling less in the USA means more watches might come here.
This new round of tariffs is bad for everyone, but you know what? There’s a good chance by the time you read this the landscape will have changed again. If not, you might have a better chance of getting that OP you’re after, even if you’ll pay a touch more for it. Fair trade?
Great article – much food for thought.
I think if the last occurrence of “UK” before the WoS photo and the first occurrence of “UK” after the WoS photo were both changed to “US” it might be easier to read. Sorry to be such a pedant!
This situation is a wake‑up call for anyone into Swiss timepieces in the U.S. That 31% tariff is real, and we’re all feeling it—prices are climbing, and even well-stocked brands are passing on costs. It’s tough on independents like Christopher Ward who ship DTC—they just raised prices directly. Suddenly, what felt like a luxury splurge is starting to look like a strategic investment. Curious how the pre-owned market will shake out in all of this—it might be the smartest play for now.