The United States has reduced tariffs on Swiss imports, including luxury watches, dropping the rate from a high of 39% to 15%. This change, which took effect on November 14, 2025, is a positive move that eases recent trade tensions between the U.S. and Switzerland. As a result, the outlook for the Swiss watch market in the U.S. is beginning to improve.

How Swiss Watch Tariffs Escalated in 2025

The two countries usually had good trade ties. In 2025, trade pressure between the U.S. and Switzerland got worse. The problems with the trade balance caused the U.S. to add high tariffs on Swiss goods, including watches.

Timeline of Tariff Changes on Swiss Watch Imports:

- April 2025 | U.S. added a 31% tariff on some Swiss goods, including watches

- August 2025 | Tariff went up to 39%, hurting the luxury watch market

- November 14, 2025 | Tariff dropped to 15% after a new deal was made

When the 39% tariff was in place, Swiss watch exports to the U.S. dropped a lot. Brands had to choose between taking on the extra cost or raising prices. Some brands held back shipments or sent products to other countries instead. Therefore, collectors saw fewer watches in stores, slower deliveries, and sometimes higher prices during that time.

The Deal That Lowered Swiss Watch Tariffs

Earlier in the year, Swiss President Viola Amherd also met with Trump to fix the issue. But that meeting did not help. After months of failed talks and pressure from Swiss exporters and U.S. retailers, progress was made in November following a meeting between U.S. President Donald Trump and top executives from leading Swiss companies like Rolex, Richemont, and Partners Group. The new deal between Switzerland and the U.S. set tariffs at 15% for key goods, including luxury products. After the adjustment, Swiss products cost about the same as those from the European Union.

What made it work this time?

Obviously, this is not a full Free Trade Agreement. As part of the deal, Switzerland promised to increase its business presence in the U.S. This includes:

• New investments in U.S. manufacturing and service centers

• Opening more Swiss company offices and partnerships in American cities

• A plan to support U.S. jobs through joint business projects

What It Means for Swiss Luxury and Watchmaking

The drop from 39% to 15% in tariffs is a big help for the Swiss watch industry. When tariffs were high, brands raised prices or held back stock from the U.S. market. Stores had less inventory, and collectors saw fewer new releases or delays in delivery. Some buyers turned to the grey market or pre-owned watches to avoid higher prices. Now with the lower tariff, brands are expected to send more products to the U.S., and stores may get better stock. This can lead to more stable prices, fewer delays, and improved confidence for buyers.

Swiss brands also have a better chance to compete again in the U.S. With prices more in line with global markets, companies may focus more on American buyers through events, special models, or increased marketing. Collectors who waited may now return to buying, and brands can work with more security in their pricing and planning. Overall, this change helps everyone in the chain, from the brand, to the retailer and collector.