Swiss watchmaker Swatch Group will lift retail prices in the United States by about 5% to 15% after Washington slapped a 39% duty on most Swiss‐made goods on 1 August 2025.
CEO outlines the plan
Chief executive Nick Hayek told Swiss newspaper NZZ am Sonntag that Swatch will balance the new duty with “transfer prices, margins and cost structures,” but higher shelf prices are unavoidable.
- “Depending on the brand, we will increase prices in the range of 5% to 15%,” he said.
- The group will phase in the adjustments “brand by brand” over the coming weeks.
U.S. demand remains solid
Despite the extra costs, Hayek reported that U.S. sales rose roughly 15% in local-currency terms through August across all Swatch brands. “Americans are continuing to buy — even after price increases,” he observed.
Example: MoonSwatch gets dearer
Hayek cited the popular MoonSwatch Moonshine Gold, which now lists at about $450, up from roughly $400 before the tariff. Final prices can still vary by retailer.
A playful protest watch
To spotlight the trade dispute, Swatch launched a limited-edition model called “WHAT IF… TARIFFS?” that swaps the numerals 3 and 9 on its dial — a nod to the 39% levy. Sold only in Switzerland, the CHF 139 piece avoids the U.S. duty entirely and is already in short supply.
Work-arounds for U.S. shoppers
The CEO noted Swatch’s extensive networks in Canada, Mexico and duty-free outlets on hundreds of Caribbean cruise ships, where the tariff does not apply. While these channels offer relief for travelling Americans, their practical reach is limited.
Broader trade backdrop
- The 39% surcharge is the steepest tariff the Trump administration has placed on any European nation.
- Certain categories, such as pharmaceuticals and some precious-metal products, can be exempt, but luxury watches are squarely in scope.
- Swiss and U.S. officials are negotiating; Commerce Secretary Howard Lutnick said a deal is “likely,” yet gave no timeline.
Company outlook
Away from the U.S., Swatch faces softer demand in China and has signalled it is willing to accept lower profit rather than cut Swiss jobs — but Hayek says the American market remains “crucial” to 2025 results.
