Editor’s Note
The term “perfect storm” aptly captures the sudden and severe impact of new U.S. tariffs on Swiss imports, particularly affecting the watch industry. As retailers like Jeremy Oster navigate this challenging landscape, the broader implications for global trade and pricing strategies come sharply into focus.
The expression is impossible to translate directly into French—a storm cannot be “perfect.” Yet the imagery remains powerful, and this is how Jeremy Oster, a watch retailer in Denver, Colorado, describes the impact of the 39% tariffs imposed by Donald Trump on August 1st on all products imported from Switzerland.
One might be tempted to think, “Spare the rod and spoil the child.” For no one doubts Donald Trump’s personal taste for “Swiss made” watchmaking. No one has forgotten the famous $100,000 tourbillon bearing his signature, developed by a watchmaker from La Chaux-de-Fonds, and the tabloids attribute to him a collection in his image—eclectic, chic, and thoroughly Swiss. Yet he has just sounded the death knell for his beloved industry, and his tariff bomb has also exploded in his own backyard: American retailers will pay a heavy price.
The massive 39% tariffs from Trump don’t only hit Swiss watch manufacturers. The entire distribution chain is affected, and American retailers find themselves on the front line. This could mark a turning point in business relations, according to an independent dealer.