President Donald Trump’s decision to impose 31% tariffs on Swiss imports includes watches, threatening margins and raising the prospect of higher US retail prices. The United States is Swiss watchmaking’s largest export market, worth nearly CHF 4 billion annually. Expert Olivier Müller expects watches above $50,000 to prove more resilient, while more accessible brands face greater demand risks.
Why it matters (interpretation): This suggests Swiss watchmakers face a significant pricing and profitability challenge in their largest export market, with less expensive segments potentially more exposed to weaker demand.