Flagship Swiss watchmaker Swatch Group expressed optimism that the Swiss government can swiftly negotiate with Washington to prevent the imposition of a looming 39% U.S. import tariff on Swiss goods, while noting that its existing inventory in the U.S. provides a short-term cushion.
Chief Executive Nick Hayek told Reuters on Monday that the group—owner of Omega, Tissot, and Longines—remains well-positioned to weather ongoing trade tensions but stressed the need for urgent diplomatic engagement following the tariff announcement last week.
The proposed 39% levy—one of the steepest duties introduced under U.S. President Donald Trump’s trade realignment—is scheduled to take effect on Thursday.
The measure was announced late last week during Switzerland’s National Day holiday, when markets were closed. News of the tariff triggered a sell-off on Monday, with shares of Swatch and other Swiss luxury firms initially falling nearly 5% before trimming losses.
“This is not doomsday. Of course, a settlement is possible,” Hayek said. “Why would Donald Trump announce tariffs for August 1 and delay implementation until the 7th? The door is still open.”
Switzerland’s federal government convened an emergency cabinet meeting Monday to formulate a response. Hayek urged Swiss President Karin Keller-Sutter to personally travel to Washington to help expedite a resolution.
“She should board a plane and go to Washington. That would dramatically improve the chances of striking a deal,” he emphasized.
Hayek revealed that Swatch currently holds three to six months’ worth of inventory in the United States, mitigating the immediate impact of the tariffs on the world’s largest market for Swiss timepieces. The company also plans to slightly increase shipments to the U.S. in the coming days.
“Our brands are performing strongly in the U.S., and consumer demand is robust,” Hayek said. “I am very pleased we moved substantial stock in the first half of the year, when the tariff story first emerged.”
According to brokerage Jefferies, the U.S. accounted for 18% of Swatch’s total sales in 2024. More broadly, the United States remains the largest overseas market for Swiss watches, representing 16.8% of exports—equivalent to roughly 4.4 billion Swiss francs (US$5.44 billion), according to data from the Federation of the Swiss Watch Industry.
