Tariff implementation devastates Swiss watch market in the U.S

On April 9th, 2025, the United States imposed a significant 31% tariff on Swiss watch imports, aiming to protect domestic businesses while impacting foreign manufacturers and retailers. This decision comes at a time when the Swiss watch industry is already grappling with challenges, as exports have shown a decline of 2.4% in the first two months of the year. With the U.S. being the largest market for Swiss watches, this tariff is affecting manufacturers like LVMH Group, Swatch Group, and Richemont Group, all of which have reported substantial declines in YTD figures. Publicly traded retailers, such as Watches of Switzerland Group, have experienced an alarming 42% drop in sales. The new tariff rates have forced the industry—including manufacturers, U.S. distributors, and retailers—to seek ways to mitigate their effects, such as adjusting pricing strategies. Notably, Mike France, Co-Founder of Christopher Ward, announced plans to absorb tariff costs by altering pricing mechanisms or storing watches in Europe until the tariffs are lifted. Industry insiders face a challenging situation as they consider the long-term implications of these tariffs on consumer behavior and profit margins. Overall, the sentiment from both manufacturers and consumers reflects a bleak outlook for future business in the luxury watch market amidst these tariff increases. The situation underscores a precarious balance between market protectionism and international trade dynamics, where even casual consumers wonder how tariffs will impact their luxury purchases.