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Message
Swatch Group raises prices on watches, frontloaded exports to get ahead of tariffs
Posted on 8/13/25 at 9:35 am
Posted on 8/13/25 at 9:35 am
LINK
The last few paragraphs sound eerily similar to what happens when a city or state cranks up taxes on corporations or the wealthy. Capital is mobile.
We have a "trade imbalance" with Switzerland because Americans like to buy luxury things, not because Switzerland is ripping us off.
quote:
Swatch Group - the biggest Swiss watchmaker by sales volume - is trying to adapt, Hayek told Reuters. The company has front-loaded shipments to the United States, is tapping U.S. shoppers as they travel abroad, and has also raised its prices.
Part of the challenge for the industry is that Swiss watches need to be 60% made in the country, making it hard to shift production elsewhere.
"We produce everything in Switzerland, not in China. And we have a high cost. And when you add a 39% tariff, we cannot absorb that. So prices will go up for sure," Hayek said on Monday, without giving specifics on the potential rise.
Swatch Group, which also owns Swiss luxury watch brands such as Omega, Tissot and Longines, already raised prices by 5% following Trump's first tariff announcement in April
quote:
For watchmakers, a silver lining was the flexibility of sales channels for their portable products, which meant Swatch could target U.S. shoppers while they are overseas in tourist hot spots. "Customers are mobile," Hayek said.
When China imposed luxury taxes, that simply drove Chinese consumers to shop in Macau and Hong Kong, he said.
"There are many possibilities for Americans. They travel all over the world," said Hayek, pointing to options like shops aboard cruise ships. "They continue to buy even if you have to increase the prices in the United States."
The last few paragraphs sound eerily similar to what happens when a city or state cranks up taxes on corporations or the wealthy. Capital is mobile.
We have a "trade imbalance" with Switzerland because Americans like to buy luxury things, not because Switzerland is ripping us off.
37
Posted on 8/13/25 at 9:38 am to Ingeniero
Ship your parts to a small warehouse, hire a few folks, and assemble your US inventory here in the states. Its a fricking watch.
Posted on 8/13/25 at 9:38 am to Ingeniero
Swatch used to allow grey market purchases of it's watches, but notably cut that down over the past few years, so you were forced to pay premium prices for their watches. It will be interesting to see how they pivot now, as luxury watch purchases have been cratering vs Covid.
Posted on 8/13/25 at 9:40 am to Ingeniero
quote:
We have a "trade imbalance" with Switzerland because Americans like to buy luxury things, not because Switzerland is ripping us off.
False. They rip us off on pharmaceuticals.
Posted on 8/13/25 at 9:45 am to Ingeniero
Does Switzerland send us anything poors consume? Not sure a 5% increase in price on an already expensive luxury item is going to move the mob's needle.
Posted on 8/13/25 at 9:55 am to Ingeniero
Was looking at a watch (CW C60 Trident) yesterday. Buy online ship to the US. I then noticed the 39% Swiss Tariff YIKES maybe it gets worked out soon and removed.
If not, then its Ebay or in US for a Seiko SPB143
If not, then its Ebay or in US for a Seiko SPB143
Posted on 8/13/25 at 9:56 am to Ingeniero
If you’re in the market for a luxury watch a 5% increase in price isn’t a deciding factor. Melt harder lib.
Posted on 8/13/25 at 9:57 am to Ingeniero
Oh no not another 250 on a 5k watch
That will do lots of damage
That will do lots of damage
Posted on 8/13/25 at 10:00 am to Ingeniero
Posted on 8/13/25 at 10:03 am to SaintsTiger
quote:
False. They rip us off on pharmaceuticals.
This and this.
The watch article is a shiny object (pun intended) to deter from the fact their largest exports to us are drugs. I believe Trump is looking at 250% tariffs in 18 months if they dont figure that segment out.
Posted on 8/13/25 at 10:03 am to Riverside
This is a 5% increase just due to the uncertainty of future tariffs. They shipped in a ton to stockpile before tariffs kicked in and the CEO said in the article they will not just absorb a 39% tariff. You think this is the only industry that's going to pass on costs to the consumer once their warehouse supply runs out?
Posted on 8/13/25 at 10:05 am to Ingeniero
quote:
We have a "trade imbalance" with Switzerland because Americans like to buy luxury things, not because Switzerland is ripping us off.
We have a trade imbalance with Switzerland because we don't produce those luxury items at home for our own consumption, much less for export. If we don't reverse our exports of jobs and dollars, the US dollar and economy is headed for a catastrophe. Our twin deficits are "ripping us off".
Posted on 8/13/25 at 10:05 am to Ingeniero
They won’t impose a 39% price increase. They will eat a huge chunk of that. Maintaining market share is a major consideration. The tariff also only applies to the wholesale price, not the retail price it’s ultimately sold for in a store.
Posted on 8/13/25 at 10:06 am to Ingeniero
Why do I need a watch when I have a computer in my pocket?
Posted on 8/13/25 at 10:07 am to Riverside
quote:
. They will eat a huge chunk of that
And yall think this is a good thing.
Do you remember when Bernie said he didnt need 100 choices in toothpaste? Y'all are pretty much pushing policy to ensure we get less compettion and less choice.
Posted on 8/13/25 at 10:10 am to RogerTheShrubber
Frankly Roger, I really don’t care about a Swiss watch company’s profit margins.
How is the cabin fund doing? Any regrets from selling in April?
How is the cabin fund doing? Any regrets from selling in April?
Posted on 8/13/25 at 10:10 am to Ingeniero
Omega's are under MSRP as is nobody is going to pay 'more' for one they are not AP, Patek, Rolex etc.
Posted on 8/13/25 at 10:11 am to Riverside
quote:
Frankly Roger, I really don’t care about a Swiss watch company’s profit margins.
You also dont care about the cornerstones of conservative trade. Consumer choice and competition.
The Swiss do some things better than the rest of the world, and MAGA wants to punish them for it.
This post was edited on 8/13/25 at 10:13 am
Posted on 8/13/25 at 10:12 am to Ingeniero
quote:
You think this is the only industry that's going to pass on costs to the consumer once their warehouse supply runs out?
Everyone is, where I work they have already adjusted prices so that the customer pays
Posted on 8/13/25 at 10:15 am to Old Money
quote:
Everyone is, where I work they have already adjusted prices so that the customer pays
Very odd. Why would this be necessary if Trump is telling us that other countries are paying the tariffs to us
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