Rolex charm offensive helps broker tariff deal with Trump
The US and Switzerland have finally reached a deal to reduce US tariffs on Swiss imports.
Since the summer, the watch industry has been reeling from the punitive 39% tariff, and so there is a collective sign of relief that it’s now been reduced to 15%.
In exchange for the improved trade terms, Switzerland has pledged to invest $200 billion in the US economy by 2028, with one-third of that investment coming in 2026. Switzerland also agreed to eliminate tariffs on a quota of US meat exports.
Swiss Economics Minister Guy Parmelin expressed “great relief,” noting the prior 39% tariffs, imposed last August, had significantly damaged the Swiss economy, with tech exports already down 14.2%.
Initial diplomatic efforts by Swiss President Karin Keller Sutter were unsuccessful, but a subsequent meeting between Swiss business leaders and President Trump proved “decisive.” The industrialists reportedly brought gifts, including a Rolex “Datejust” desk clock from CEO Jean-Frédéric Dufour.
US Trade Representative Jamieson Greer confirmed the agreement, stating the deal “tears down longstanding trade barriers” and that the Swiss investment will create thousands of new American jobs.
The 15% rate aligns Switzerland with the tariff rate the EU has with the US.
The chief trade negotiator said it would take a few days or even weeks for the changes to come into effect.
