NextFin news, Swiss watchmaker Swatch Group confirmed on Monday in Zurich that it will raise prices in the United States by between 5% and 15% following the imposition of a 39% tariff on Swiss watch imports by the U.S. government. The tariff increase, which took effect on August 7, was introduced under the administration of former President Donald Trump.
Nick Hayek, CEO of Swatch Group, stated in an interview with the Swiss German-language newspaper Frankfurter Allgemeine Sonntagszeitung that despite the tariff hike, the U.S. market remains strong, with some brands experiencing growth of 20% to 30%. He noted that price increases of around 5% were already implemented in April due to earlier tariffs and currency fluctuations, and further hikes are now necessary to offset the new duties.
The tariffs are part of a broader trade dispute between the U.S. and Switzerland, with Swiss watch exports to the U.S. accounting for a significant portion of the industry’s revenue. In the first seven months of 2025, Swiss watch exports to the U.S. rose by 24.1% year-on-year to CHF 3.11 billion (approximately $3.4 billion), with Swatch Group holding about six months’ worth of inventory in the American market.
The 39% tariff rate is notably higher than the 15% applied to the European Union and 10% for the United Kingdom, prompting calls from Swiss industry representatives for negotiations to reduce the tariff burden. Delphine Bachmann, responsible for economic affairs for the Geneva cantonal government, emphasized the need for further talks to align tariffs more closely with those applied to other trading partners.
Swatch Group’s decision to increase prices in the U.S. aims to mitigate the financial impact of the tariffs while maintaining competitiveness. The company’s CEO also suggested that excessively high tariffs could encourage American consumers to purchase Swiss watches abroad or duty-free, potentially harming U.S. retailers.
The announcement comes amid ongoing uncertainty in the Swiss watch industry regarding the long-term effects of the tariffs and potential strategies such as rerouting exports through the European Union or adjusting production locations. However, Swatch Group remains confident in the resilience of the U.S. market despite these challenges.
Source: Reuters, MSN, Frankfurter Allgemeine Sonntagszeitung, statements by Nick Hayek, Swatch Group CEO, reported on Monday, September 15, 2025, in Zurich, Switzerland.
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