Tariffs spark debate between US and Swiss markets

A tariff clash between the United States and Switzerland tests luxury watchmakers and pharma firms as negotiators weigh exemptions.

How One Legendary CEO One Independent American Retailer And One Swiss Pre-Owned Seller Respond To The Tariff Situation

The United States has imposed heavy tariffs that ripple through the luxury goods sector. In Geneva, Shahzaib Khan of K2 Luxury has halted shipments to U.S. clients as Switzerland seeks a better deal, and exporters warn that if no agreement is reached by September, orders could fall by 20% to 30%, leading to reduced production and possible job cuts. The high-end watch market lives on delicate supply chains that now face disruption as negotiations unfold.
Breitling chief executive Georges Kern remains hopeful that a negotiated outcome is possible. He notes that gold refined in Switzerland is not subject to tariffs and argues that Switzerland’s investments and the jobs they support in the United States should count in any deal. He also points to the pharma sector as a potential carve-out and a reason why both sides have a stake in reaching a fair resolution.

The tariff dispute exposes how closely luxury manufacturing, finance, and diplomacy are intertwined. A sector like Swiss watches depends on cross-border trust and timely shipments, and tariff friction threatens to shrink sales, slow production, and weigh on workers. Yet the dialogue also reveals how trade policy can hinge on exemptions for certain pillars of the economy, such as precious metals and drugs, that have outsized economic heft beyond sticker prices.
If negotiators can craft a package that protects jobs while recognizing Switzerland’s broader economic ties to the United States, the talks could set a cautious but constructive precedent for how to handle future tariff disputes. The real test will be whether both sides can translate promises of investment and employment into a tangible path that reduces friction without inviting new protections.

Highlights

The next rounds will reveal whether trade talks can turn pressure into a real, workable compromise.