NextFin news, On Saturday, September 13, 2025, in Switzerland, Swatch Group CEO Nick Hayek publicly criticized the Swiss Federal Council and political parties for their lenient approach toward the United States amid ongoing trade tensions. Hayek condemned Switzerland's perceived weakness in the face of US punitive tariffs on Swiss watches, describing the country's political leadership as sending a "catastrophic signal" to the world.
Hayek's comments came as part of a response to the 39% tariff imposed by the US government on Swiss watch imports, a measure introduced by the Trump administration earlier this year. To counter the tariffs, Hayek launched a special edition Swatch watch named "What if...Tariffs?". The watch features symbolic design elements referencing the 39% tariff rate and is priced at 139 Swiss francs. It is sold exclusively in Switzerland through eleven stores and online, with advertising that ironically hopes the tariffs will soon disappear.
Hayek told the Swiss newspaper "Schweiz am Wochenende" that the special edition was intended as a positive provocation to keep public attention on the issue and to challenge the complacency he perceives in Swiss politics. He stated, "Switzerland is weak and will give in immediately. We are easy to panic." He also noted that foreign contacts expressed surprise that Switzerland, a strong and independent country, was not standing up more firmly to the US.
Meanwhile, Rolex CEO Jean-Frédéric Dufour has taken a different approach by inviting former US President Donald Trump to the US Open tennis final, seeking dialogue rather than confrontation.
Despite the tariffs, Swiss watch manufacturers have reported increased sales in the US market. Swatch raised prices by 5% after the initial tariffs in April but still saw a 20% sales increase in the US. Rolex has not disclosed specific figures but appears similarly unaffected by the tariffs.
However, other Swiss industries such as machinery and metal manufacturing are under pressure. According to Swissmem, about one-third of companies in these sectors are considering relocating parts of their production abroad due to the tariffs, risking thousands of jobs in Switzerland. Companies heavily reliant on US exports, including Victorinox and Thermoplan, are particularly affected.
The Swiss State Secretariat for Economic Affairs (Seco) is currently surveying large Swiss companies about their planned investments in the US, aiming to increase these figures as part of Switzerland's trade strategy. During a recent phone call, Swiss President Karin Keller-Sutter told Trump that Swiss companies plan to invest between 150 and 200 billion Swiss francs in the US, despite Switzerland's smaller size compared to the EU.
Hayek hinted that while Switzerland is already one of the largest investors in the US, he would prefer to demonstrate that Switzerland could invest less rather than more, implicitly questioning the effectiveness of such commitments.
The ongoing trade dispute and tariffs remain a significant issue for Swiss industry and politics, with the watch sector showing resilience but other sectors facing challenges.
Source: blue News, September 13, 2025, https://www.bluewin.ch/en/news/swatch-boss-again-criticizes-federal-council-over-customs-hammer-2868944.html
Explore more exclusive insights at nextfin.ai.
