The career of a 240 -year Swiss watchmaker to overcome Trump's rate deadline

When a deadline of US rates approached. UU., The Swiss Watch Dubois et Fils manufacture rush to send five high -end watches worth thousands of dollars each to the United States. For Wednesday, the firm had blocked the orders on its US website. Now the CEO Thomas Steinemann is calculating the price increases that it will need to do.

Whipsaw week for the Swiss horologist, when the president of the United States, Donald Trump, accommodated a surprise commercial tariff of 39% of imports from the European country, underlines how large and small companies are forced to adapt and rejigate the operations under pressure.

Dubois et Fils, founded in 1785, accelerated the shipments on Monday from his factory in Muttenz, near Basel, to cross customs before the United States's rate on Switzerland imports went into force.
The 39% rate, above the reference tariff rate of 10% since April, entered into force at 0400 GMT on Thursday after the Swiss President returned from an emergency trip to Washington without an agreement.

“For the clock industry it is a great disaster,” said Steinemann, who explained that he had blocked American orders because prices should be recalculated to account for tariffs. The firm would not absorb the coup, he said. “The United States was a great driver in the last two years. Now this kills much of the business.”

His US prices were going to increase, he added. The Dubois DBF008 clock, for example, would probably rise to $ 14,500, from $ 10,800. The United States represents about 15% of Dubois global sales, which is sold directly to US consumers.

The broader Swiss watch industry is feeling the pinch, planning price increases, stopping American orders and searching for alternative markets for their expensive handmade watches. The country is home to brands such as Rolex, Patek Philippe, Tag Heuer, owned by Swatch, Omega and IWC Schaffhausen, owned by Richemont.

The United States represented 17% of the total of 26 billion Swiss francs in Switzerland ($ 32 billion) of surveillance exports last year, according to the Swiss Watch industry federation. Exports to the United States increased in April as the guards loaded the front shipments before a first deadline for rates.

Combined with a weaker dollar against the Swiss Franco, the tariff walk will cause Swiss watches to be 65% more expensive on average for US consumers, estimated amarildo pilot, owner of Pilo & Co Watchmakers.

He said many brands had already sent some product to the United States in advance, but warned that this was not a long -term solution. The United States had been a market in which everyone was focusing recently and wanted to develop, he added.

“My personal opinion is that what is going to happen is that Americans will no longer buy watches in the United States,” said Pilo, who is also the founder of the Swiss Independent Watch Pavilion, which represents 28 independent brands. “But those who want them and those who like watches will buy them elsewhere. Honestly, it is a loss for the United States.”

The tariff's blow is a broader side against Switzerland, even if the conversations continue with the hope of finally reaching an agreement. Trump argues that tariffs are needed to undo commercial distortions and return manufacturing to the United States.

“The impact could be very strong in the Swiss economy,” said John PassSard, partner and head of the investment strategy at CITE Gestion Private Bank. Analysts estimate that rates could touch between 0.3% and 0.6% discount on Swiss GDP growth during the next year. “Cutting potential growth in half, I would say. Therefore, the indirect impact could be more unemployment on the Swiss economy,” said Passard.

In the Vintage Watch Boutique de Sacha Davidoff in Geneva, there was a feeling of shock. Many in the country expected a similar or better agreement than 15% that will be collected in most imports of the European Union. Switzerland is out of the block.

“At this time we are living the nightmare that we expected to be. “(ES) It is a kind of 'game over' for us. It basically reduces the US market as a possibility for the export of old watches completely.”

However, I expected the situation to be resolved eventually.
“I think this will be a difficult period in which we will basically have to put the US market in pause and focus on national sales,” he said.