In response to the 39% tariff imposed by President Donald Trump on Swiss imports, Swatch Group (OTC:SWGAY) has announced a price increase of 5% to 15% for its products in the United States.
Swatch To Hike Prices 5–15% Amid Rising US Tariffs
Swatch’s CEO, Nick Hayek, revealed the price hike in an interview with the NZZ am Sonntag newspaper, reported Reuters. Hayek explained that the U.S. tariffs could be offset through transfer prices, margins, and the cost of the company’s products. The price increase will vary by brand, with American consumers also having opportunities in Canada and Mexico.
“Depending on the brand, we will increase prices in the range of 5 to 15%,” Hayek said.
He also noted that Swatch products are sold on many Caribbean cruise ships, often duty-free. Despite the tariffs, Swatch has seen strong performance in the U.S., with a 15% increase in local currency sales across all brands by the end of August.
Hayek pointed out that the MoonSwatch Moonshine Gold watch now sells for $450, up from $400. “Naturally, American customers weren’t happy about that, but they also understood that it wasn’t our fault, but rather the result of U.S. policy,” he said.
Swatch Mocks Tariffs With Limited-Edition "WHAT IF…" Watch
Swatch has been proactive in its response to the tariffs, launching a special edition watch called "WHAT IF…TARIFFS?" that mocks the U.S. President’s punitive measures. Despite the price hikes, the company’s performance in the U.S. remains strong, reported CNBC.
A company spokesperson stated the model was meant as a "positive provocation" toward authorities and a strong prompt for the Swiss government to negotiate a better deal with the U.S.
A company spokesperson said the watch, priced at 139 Swiss francs ($174), is a limited-edition product meant as a "positive provocation" to push the Swiss government for a better U.S. trade deal. Sales will stop once U.S. customs duties on Swiss goods change.
Swiss Under Pressure To Strike A Deal Amid 39% Tariffs
In August, President Trump announced that gold imports would not face tariffs, reversing earlier reports that the administration was considering a levy on one-kilogram gold bars from Swiss refineries.
On Thursday, Commerce Secretary Howard Lutnick told CNBC that they are hopeful of striking a deal with Switzerland. "Switzerland will find its way over time," said Lutnick.
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