Switzerland, U.S. Reach Deal to Reduce 39% Tariff

By Rob Bates | November 14, 2025

In what will likely prove a boost for the watch business, Switzerland and the United States have agreed to lower U.S. tariffs on Swiss imports from 39% to 15%—a more manageable but still historically high number.

Sara Yood, president and CEO of the Jewelers Vigilance Committee, tells JCK it’s unclear when the new duty will take effect. She points to a White House statement issued today, which said the countries hope to conclude negotiations on the deal by early next year.

“That implies that this will not be finalized until early 2026, but I don’t know if we’ll get the lower rate sooner,” Yood says.

The Swiss government also announced a “non-binding memorandum of understanding” on its website today but didn’t prove any details as far as timing. A Swiss spokesperson didn’t return a request for comment.

Oliver R. Müller, founder of Luxeconsult, a Swiss company that advises the watch business, tells JCK that the reduction will be “a huge relief for the whole Swiss economy and more specifically for our watch industry.

“Lowering the tariffs from 39% to 15% will avoid the price increases that would have become necessary to absorb the tariffs,” he says. “After [Trump’s initial tariff announcement on] April 2, watch brands built up substantial overstocks on U.S. soil. After the shock of Aug. 1 and the announcement of 39% tariffs, many brands introduced price increases to partially absorb the tariff increases.

“But many also wanted to wait and avoid an unnecessary price increase on top of other headwinds, like the strong Swiss franc and the unabated increase of the price of gold and other precious metals,” Müller says.

The 39% tariff “would have meant a 12–14% increase at retail, which is far from being marginal,” he adds. “At 15%, I consider that the cost increase has been priced in, and that’s good news for the people selling Swiss-made watches in the U.S.”

The agreement comes a week after President Trump met with the heads of several Swiss companies in the White House, including Jean-Frederic Dufour, the CEO of Rolex; Johann Rupert, chairman of Richemont; and Alfred Gantner, co-founder of Partners Group, which owns Breitling. During the visit, Dufour reportedly gifted the president a Rolex table clock.

Rupert later told the press: “Swiss and Americans are very similar: independent, reluctant to accept heavy-handed government. So I think this misunderstanding will be resolved.”

The Trump administration implemented the 39% Swiss tariff, one of the highest rates in the world, in August, following a “disagreeable” phone call between Trump and Swiss president Karin Keller-Sutter.

The new duty caused U.S. imports of Swiss watches to drop 56% year-over-year in September, according to statistics compiled by FH, which called the drop “expected but nonetheless extraordinary.

Last month, the American Watch Association and the Jewelers Vigilance Committee filed an amicus brief with the U.S. Supreme Court in a case to strike down the administration’s tariffs on watch imports, arguing the current levies could hurt independent jewelers.

(Photo: Getty Images)