Business News: Hot Offerings From Swiss Watchmakers Wrestle For Attention With Tariff Price Talk At Geneva Watch Days

Edouard Meylan, the Swiss head and CEO of H. Moser & Cie, doesn’t mince words when asked to grade the success of the watch industry and Swiss government’s diplomacy efforts so far in negotiating a trade deal with the United States. 

“It sucks,” he says. “They were very naive. I can’t believe the way our government went for it.”

The 39% levy imposed on Swiss goods imported into the U.S., the top market for Swiss timepieces, has forced the industry to react. Moser, like many others, moved to ship as much stock as it could to U.S. retailers ahead of August 7, when the higher rate came into effect. Some brands, including Christopher Ward, have accelerated or initiated plans to use U.S.-based entities to take advantage of transfer pricing and reduce the impact of Swiss tariffs. Some Swatch Group brands, such as Blancpain, are again raising prices, while Richemont brands, which include IWC, Panerai, and Cartier watches, are also expected to adjust prices soon. Meanwhile, other smaller brands that use third-party manufacturers are even beginning to have their watches assembled in the U.S., in another bid to lessen the tariff impact. Even legendary marques such as Patek Philippe have had to adjust. Geneva-based Patek will raise prices by 15% beginning September 15, according to people familiar with the matter. A Patek spokesperson in Geneva declined to comment.

Meylan says demand for Moser’s products, which include the Streamliner and Pioneer models showcasing the brand’s modern design aesthetics with unique and impressive dials and highly finished, complicated Swiss in-house movements, has remained solid. He expects sales to grow “slightly” this year, despite market turmoil. The brand raised prices by about 8% in June, in response to tariffs, as well as the continued strength of the Swiss franc against the dollar and record gold prices. With inventories in the U.S. set to run out in a matter of months, he will soon have to decide whether to implement another price increase of about 10% if the tariff situation continues at current levels. The U.S. is simply too big and important a market to be offset by shipping more to other markets.

“Even combining Mexico, India, and Japan, you don’t compensate for the U.S.. The U.S. is still very important,” Meylan says, as the brand introduced three new Pioneer models, including a perpetual calendar and two ‘Flying Hours’ complication models, at the Geneva event. “If we increase [prices] 10% we certainly would see a reduction of sales for a little while. But at the same time, the stock exchange is so strong, the economy seems to be doing well, and some people will continue to buy watches. We might lose a little bit for a while, and then it is going to be the new normal.”

While Moser produces about 4,000 watches a year, MB&F, the 20-year-old brand led by its namesake founder Max Büsser (& Friends), makes just 400. The Geneva-based firm doesn’t have the scale to create a U.S. entity, so it’s more exposed to the tariff rates. To celebrate MB&F’s two-decade anniversary, it gave fans of the creative-design-driven marque something they’ve long asked for, a new Legacy Machine 101 EVO available with a green or salmon dial in a titanium case. Each limited to 30 pieces a year, they’re priced at CHF 62,000 for buyers in Switzerland. As for U.S. clients? Büsser says that MB&F is considering a price increase of about 15% for U.S. clients. MB&F and its retail partners will also take a margin hit on U.S. sales due to the tariffs.

“As long as the 39% tariffs are in place, there will have to be an approximate 15% price difference between the US and the Swiss ex-tax prices, as MB&F, our retailers, and the clients will be sharing the pain,” Büsser says.

Unlike brands with larger volumes MB&F didn’t have excess stock to ship to retailers before the tariffs kicked in on Aug. 7. Some of the biggest brands, including Rolex, Omega, and Audemars Piguet raised prices between 3% and 10% following the initial round of tariffs, but have been able to hold off on more price hikes despite the current high tariffs because they were able to ship excess inventory to U.S. retailers. Büsser, an industry veteran who once served as the managing director of Harry Winston’s timepieces division, says he expects the big Swiss brands to feel the pressure soon if the tariffs remain at 39%. He says some may struggle to explain big price increases at Watches and Wonders for new models that amount to little more than a dial color change.

Jean-Christophe Babin, the head of LVMH’s watches division and the CEO of Bulgari, is also a founder and chairman of Geneva Watch Days. The event attracted a record 17,000 visitors this year, with the number of brands participating growing to 66 from 54 in 2024. Babin conceded that tariff talks and industry challenges were top of mind for many attendees and brands that pay fees ranging from €5,000 to €300,000 to participate. However, he notes that Geneva Watch Days was founded amid the COVID-19 crisis and would remain resilient. 

“This time is a bit different because it is more of a geopolitical and economic scenario as well as military conflicts and wars,” he says. “The uncertainty level is one of the highest we have had since the end of the Second World War.”

Babin says most LVMH brands, which include Tag Heuer and Zenith among others, have been able to ship enough stock to retailers to last several months and have no urgent need to move on prices at the moment.

“The only thing I would suggest to our American friends is that if you plan to buy a watch, buy it now rather than in six months,” he says, “Because maybe in six months, it will be a bit more expensive.”