Tariffs, Timepieces, and Trade: How New U.S. Duties Are Reshaping Watchmaking
The U.S. has thrown a wrench into the gears of global watchmaking. With new tariffs imposed on watches and components from Switzerland, Germany (EU), and Japan, the finely tuned economics of timepiece production are shifting rapidly. Here’s a breakdown of what’s happening, who’s most exposed, and which American players could benefit. Breitling Chronomat 36 with Nave Blue Dial - Currently $5,450 What Changed? Switzerland: A hefty 39% tariff now applies to Swiss imports—including watches and components—as of August 7, 2025. European Union (Germany included): The U.S.–EU deal settled tariffs in the 12–16% range, still meaningful but far below Switzerland’s. Japan: Japanese goods, including complete watches and movements, face rates around 15% post-deal. Customs note: For duties, the key factor is country of origin. A U.S. microbrand casing a Japanese movement still pays Japan’s rate unless assembly qualifies as “substantial transformation.” Who’s Most Affected? Switzerland (39...