Trump Pauses Reciprocal Tariffs For 90 Days Giving Swiss Watch Industry More Time For A Deal
President Trump said he would pause so-called ‘reciprocal’ tariffs against most nations for 90 days, giving the Swiss watch industry breathing room for the Alpine nation’s government to negotiate a deal to avoid punishing cost increases in its top export market. The US president announced on Truth Social that the levies, including a 31% tariff on Swiss goods, would be delayed. A 10% tariff on goods imported into the US will remain in place, a White House spokesperson said. Significant tariffs against China will also stay in effect.
The delay gives Swiss officials time to strike a potential deal and avoid a likely drop in sales for Swiss watchmakers in their biggest export market.
The $50 billion Swiss watch industry was particularly vulnerable to the threatened levies designed to protect American manufacturers. Critics argued that the so-called reciprocal tariffs against Switzerland were illogical, as there is no significant US watchmaking capacity, and the US trade deficit with Switzerland is due largely to differences in population size.
The US tariff calculations were based on the trade of goods but did not include services such as software, cloud storage, and entertainment. Swiss president Karin Keller-Sutter said earlier on social media platform X that during a call with Trump on Wednesday, she conveyed Switzerland’s stance on bilateral trade and ways to address US ambitions.
“Looking forward to working out solutions in the very near future,” Keller-Sutter said.
This is a developing story, and Hodinkee will provide updates on how US trade policies will affect the Swiss watch industry and consumer prices.
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