As of November 14, 2025, the US has reached an agreement with Switzerland to lower tariffs on Swiss goods to 15%. This replaces the 39% tariff imposed by the Trump administration in August 2025.
For years, the US has been the largest watch export market for Swiss watches; however, in September 2025, due largely to punitive tariffs of 39%, the US fell to third place, representing a huge 55.6% drop compared to September 2024 at wholesale (sell-in). Swiss exports to the US dropped by 24% in August 2025 compared to August 2024.
Key details of the new agreement
1- Negotiated reduction: The new 15% rate is a significant reduction from the 39% tariff imposed just a few months prior, which was devastating to Swiss exports.
2- Products affected: The 39% tariff significantly impacted major Swiss exports, including luxury goods like watches, chocolate, and machinery. This new deal will provide relief for these key sectors.
3- Motivation for the change: The tariff was initially imposed due to a US goods trade deficit with Switzerland. The agreement followed intense diplomatic efforts and negotiations between the two countries, which included a meeting between President Trump and Swiss business leaders.
4- Additional commitments: In exchange for the lowered tariffs, Switzerland has agreed to increase investment in the U.S.. This includes plans for Swiss companies to build new manufacturing facilities for pharmaceuticals and other goods within the United States, and according to Reuters, Switzerland has pledged $200 billion in US investments.
Final Thoughts
The unfavorable exchange rate between Swiss Francs and US Dollars, high US inflation, record-high retail prices on Swiss watches, high unemployment, and US economic uncertainty could still stifle watch retail sales (sell-out) in the US market. However, getting the 39% tariff reduced to 15% will likely trump all the other factors. It could reverse the current downward Swiss import (sell-in) trend and lead to the US regaining its position as the number one importer of Swiss watches for the final months of the year: November and December 2025.
Sources:
https://www.fhs.swiss/eng/statistics.html
https://fortune.com/2025/11/13/swiss-billionaires-trump-tariff-deal/
https://www.nytimes.com/2025/11/14/business/switzerland-us-tariffs-trade-deal.html