By
Bloomberg
Published
August 1, 2025
The actions of the Swiss Watches Group PLC fell up to 6% after the president of the United States, Donald Trump, announced a 39% tariff on the imports of Switzerland, one of the most pronounced rates introduced so far in the growing commercial war.
The retailer, known for selling Rolex and other Swiss watches in the United Kingdom and the US, has been more affected by the latest tariff measures. Financial markets in Switzerland closed for a holiday, initially saving producers that quote on a stock market such as Richemont and Swatch Group AG of the immediate reaction of the price of shares.
Swiss watches exports had already increased at the beginning of this spring, since Trump threatened a 31%tax. The importers hastened to bring inventory ahead of the possible tariffs, before the volumes stirred in advance of a possible commitment.
If 39% of the rate progresses, they could lead to increases in retail prices of USA of more than 20%, according to Jefferies analysts led by James Grzinic. However, there is still the possibility that the measure is not implemented.
“The parenthesis of a week until the implementation suggests that this could be a negotiation tactic,” Grzinic said in a note.
Swiss watches exports fell almost 10% in May, largely driven by a fall in shipments to the US.
“The emergence of the 'luxury fatigue', a 'factor of feeling good' of luxury purchases, and the worsening of the feeling of the consumer contributes to a less optimistic perspective,” wrote Vontobel analyst Jean-Philippe Bertschy in a note last month.
