Swiss Luxury Watch Industry Braces for Catastrophic Job Cuts as US Tariff Deadline Looms
Swiss Luxury Watch Industry Braces for Catastrophic Job Cuts as US Tariff Deadline Looms
The luxury Swiss watch industry is currently grappling with the severe repercussions of heavy U.S. tariffs, with industry leaders expressing dire warnings ahead of a critical September deadline. Geneva-based K2 Luxury, a prominent dealer of high-end pre-owned Swiss watches, has already halted shipments to U.S. clients, anticipating “catastrophic” consequences for exporting brands if a favorable deal isn’t secured.
Shahzaib Khan of K2 Luxury predicts a potential 20% to 30% reduction in U.S. orders, which he warns would inevitably lead to production cuts and significant job losses within the sector. Despite the grim outlook, Breitling CEO Georges Kern remains cautiously optimistic. Kern points out that Swiss gold, a major component of the U.S. trade deficit with Switzerland, is exempt from the tariffs, and highlights the substantial Swiss investments in the U.S. economy, which support hundreds of thousands of American jobs. He also suggests that Switzerland’s pharmaceutical companies, whose products are similarly exempt from the 39% tariffs, could play a crucial role in finding a resolution.
“We are all civilized people. We all want to make business. We all want to make trade in a fair and reasonable manner,” Kern stated, underscoring the mutual desire for a diplomatic solution to the escalating trade dispute.
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