Business News Switzerland Moves Closer To U.S. Trade Deal That Could Bring Tariff Relief For Watch Industry

Swiss finance minister and current president Karin Keller-Sutter said on the weekend that Switzerland would present a proposal to the U.S. within two weeks following talks with Bessent and Trade Representative Jamieson Greer. Keller-Sutter said without a signed deal, it was still too early to say Switzerland was "out of the woods,'' but noted progress had been made and that "we can say that it is encouraging that the Americans want to speed up the process," she added.

The $50 billion Swiss watch industry was sent reeling by the initial 31% tariffs on Swiss imports to the U.S. announced on April 2. The so-called reciprocal tariffs were paused for 90 days, a week later, while a blanket 10% tariff remains as officials seek new trade agreements.

The U.S. is the biggest single market for Swiss watch exports, which increased to about CHF 4.4 billion in 2024, or about 17% of total shipments by wholesale value. American buyers have been the key growth market for many top brands in recent years, following a pullback from Chinese consumers. In response to the tariffs as well as the soaring value of the Swiss franc against the dollar and a gold price that has jumped to record levels, Swiss watch brands, including Rolex, Tudor, Omega, and Audemars Piguet, among others, raised prices in the U.S.

Bessent, on Monday in Geneva, highlighted Switzerland's role as host for the China trade talks as well as the Alpine nation's deep economic ties with the U.S. "We value the relationship,'' Bessent said, noting that Switzerland is among the sixth largest investors in the U.S. despite its relatively small economy with 9 million people. "We hope that Switzerland will bring some of its very robust trade training programs to the U.S. as we re-engage the manufacturing sector because I believe the U.S. has a lot to learn from Switzerland,'' he said.

Bessent and Greer also praised the Chinese trade delegation's willingness to end what had effectively been a trade embargo between the two countries as they announced a slashing of tariffs on most China imports to 30% from 145% while China cut tariffs on U.S. goods to 10% from 125% as part of a 90 day pause giving time for a permanent deal to be struck. Stock market futures jumped on the news of the tariff reduction and easing of trade tensions, and the U.S. dollar rallied against safe-haven currencies, including the Swiss franc. 

The tariff reduction will lower costs for watchmakers who produce watches in China and those who source components or accessories, such as bracelets, from the Asian manufacturing giant.