Swiss Watch Stocks Climb as Investors Bet on Softer U.S. Tariff Policy
On Friday, Swiss luxury watchmakers' stock prices went up after new hopes that the US might lower some import duties that have been a burden on European exporters for years. Market analysts say that the rise happened after several U.S. trade advisers said that tariff rules on some luxury goods, like watches, would be looked at again as part of a bigger review of trade policy.
The stocks of well-known brands like Richemont and Swatch Group went up by 2% to 4% in the first few hours of trading. Investors thought that recent comments from U.S. officials were a sign that the White House might be thinking about changing the tariff classifications that were put in place during the Trump administration.
"The market is reacting to the possibility of a more stable tariff environment," said Daniel Krähenbühl, a luxury goods expert from Zurich. "Any lowering of U.S. tariffs would help Swiss exporters right away, especially in the high-end and premium watch markets."
The United States has always been the second biggest market for Swiss watchmakers. Uncertainty about tariffs has affected long-term sales forecasts, inventory planning, and prices. Researchers say that even small changes in tariffs could have an effect on the market for high-margin models.
“We’re evaluating whether current tariff structures align with U.S. economic priorities,” a senior U.S. trade official told earlier this week.
People who watch the industry say that any change in policy could take months, depending on talks and legal reviews. The Swiss watch industry, which has been through supply chain issues and changing demand since the pandemic, is hopeful even though the possibility of tariff relief is still there.
Swiss exporters hope for stability after years of trade that was not stable.
Swiss exporters say they want clarity instead of a big change after years of changing tariff rules and political instability. Groups in the luxury industry think that a stable trade policy is important for making long-term contracts, investing in marketing, and planning production.
Richemont executives recently told shareholders that tariff policy is still "shaping pricing strategies in meaningful ways," even though sales in the U.S. are still strong.
Economists say that the tariff assessment could also affect supply chain decisions, like whether companies decide to put their distribution centers in Europe instead of the US.
In the next few weeks, people who watch the market think that Swiss watch stocks will still be affected by any new statements from Washington.
Skenes and Skubal Win Cy Young Awards as Future Uncertainty Grows
NOVEMBER 12, 2025
Politics
Warren Buffett Says Age Is Catching Up but Reaffirms Confidence in Berkshire’s Next CEO
Warren Buffett, who is 95 years old, told shareholders that "Father Time" is now catching up with him as he gets ready to leave his job as CEO of Berkshire Hathaway in January. He did say, though, that Greg Abel is more than qualified to lead the company.
BUSINESS BY NOVEMBER 11, 2025
Funding Standoff Forces Flight Cuts, Straining U.S. Supply Chain
Financial insiders who know what's going on say that UBS has put off moving some very wealthy Credit Suisse customers to its platform because of problems with technology and management.
BUSINESS BY NOVEMBER 9, 2025
U.S. Retailers Expect Record Holiday Sales as NRF Forecasts First-Ever $1 Trillion Season
The National Retail Federation says that holiday sales will reach a record $1 trillion this year because eager shoppers are taking advantage of early discounts and strong consumer demand.
BUSINESS BY NOVEMBER 7, 2025