Luxury had big ambitions for the US watch market in 2025. But after a roller coaster of on-again, off-again tariffs, these high hopes have proved more far fetched than hard luxury executives had anticipated. Now, the just implemented 39 per cent tariff on Swiss-made goods — one of the highest rates in the world — poses a major obstacle to US growth.
Even before they knew how high the tariffs would be, executives were concerned. In July, Bernard Arnault told The Wall Street Journal: “I’m pushing as much as I can for us to reach an agreement with the Americans, so that we don’t get caught up in a trade war, which would be extremely damaging for European businesses.” That same month, Richemont chair Johann Rupert assured investors that the company wouldn’t embark on steep price increases.
