Luxury Watch Market Ambitions in the US

The luxury watch market had high ambitions for the US market in 2025. However, these hopes have proven to be far-fetched due to the implementation of a 39 percent tariff for Swiss goods, the highest in the world. This tariff is a significant obstacle to the growth of the luxury watch market in the United States.

Concerns Over Tariffs

Before the tariffs were implemented, luxury executives were concerned about the potential impact on the market. They had expected a more favorable trade agreement, but the high tariffs have dashed their hopes. The concerns were evident in the statements made by top executives in the industry.

Executive Statements

In July, a prominent luxury executive expressed concerns about the potential trade war and its impact on European companies. The executive emphasized the need for an agreement with the Americans to avoid a trade war that would be extremely harmful to European companies. Another executive assured investors that the company would not initiate any strong price increases, despite the challenges posed by the tariffs.

Impact on the US Market

The implementation of the 39 percent tariff for Swiss goods is a significant blow to the luxury watch market in the US. The high tariffs will make it difficult for luxury watch brands to maintain their prices, and the market is likely to suffer as a result. The growth of the luxury watch market in the US, which was expected to be significant in 2025, is now uncertain due to the tariffs.