MTR
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Hopefully, Trump and his advisors have studied history
The Smoot-Hawley Act of 1930, pushed by Republicans Willis Hawley and Reed Smoot, aimed to protect U.S. agriculture by imposing tariffs on 21,000 goods. Instead, it greatly worsened the global economic crisis after the 1929 stock market crash.
Around 30 foreign governments protested, Henry Ford called it “economic stupidity,” and over 1,000 economists begged President Hoover to stop the law—but he signed it anyway.
After the law took effect, U.S. imports dropped by two-thirds between 1929 and 1933, and exports fell by 61%. Many countries responded with their own tariffs, causing global trade to shrink by nearly two-thirds. The League of Nations’ call for a “tariff truce” was ignored.
Retaliatory tariffs acted as an accelerant to the economic crisis—a lesson that should not be forgotten.
How Will the New 31% Tariff on Swiss Watches Impact You?
Effective April 3, 2025 , the United States will implement a 31% tariff on watches imported from Switzerland . This message has been edited by India Whiskey Charlie on 2025-04-02 22:25:49 ...
Roland G. Murphy must be sitting pretty right now!
Not sure I see how this would help anybody else.
A lot of people buy while travelling
I assume this will continue. Not sure how the retailers in the US we cope given the recently published numbers were already negative, maybe some bargains to be had when looking at older inventory.
True, I still think that applies to existing inventory
I will continue to track certain pieces in the US but perhaps new releases are not a wise pursuit in the short term
Wouldn't be surprised if new laws are proposed to give CBP access to overseas credit card or bank transfer transactions when re-entering the US
I imagine they will target undeclared imports from tourists returning home now that the higher tariffs justify the effort.
If we draw an analogy to cars in the U.S.
Demand for new cars is high, consumers are rushing to buy what dealers already have on the lot to avoid a $6k increase in MSRP on ICE vehicles and $12k increase in MSRP on EV’s. In a few months, once todays existing inventory is depleted from dealers lots...
Keeping up the car analogy…
BMW and MB manufacture cars in the US. What’s stopping watch companies from having a parallel assembly line in the states? The same way a GLC300 is made in the states and a G63 is made in Austria, your Datejust could be built in Alabama and your Daytona i...
There will be a fair bit of arbitrage
Prices will be lower in countries with a lower tariff Australia 10% USA 31% China 34% Julian
The full list of reciprocal tariffs here...
Full List of Countries Hit With Reciprocal Tariffs Country Tariffs Charged to U.S. New U.S. Reciprocal Tariff China 67% 34% European Union 39% 20% Vietnam 90% 46% Taiwan 64% 32% Japan 46% 24% India 52% 26% South Korea 50% 25% Thailand 72% 36% Switzerland ...
It will hurt only if I win the MB&F MAD lottery
I’m not holding my breath on that, having missed every one before …
Ugh, I didn't think of this!
I ordered an orange. Guess the customs bill is going to be high 😩
Buy German watches?
Did those escape the tariffs? I didn't see Germany on the lists so far, just for cars. I'm going to baby my BMW now!
Does Trump not realise he has shot himself in the foot?
I mean not only is gold at a high and still climbing but his Trump gold watch has just got 31% more expensive with his own tariff. Marc
Let’s all take deep breaths and let this thread rest
Before we get too wound up and have to lock it down …
I have opinions, but I’ll keep them to myself out of respect for the site.
That said, my wife is doing back flips because this will probably cause her husband to slow down his watch purchases…so there’s that.
One business article
said the watch companies should strive to equalize prices around the world as is their practice. This would share the increased cost globally and lessen the impact on buyers in the US.
Having just had a discussion with the folks at Lange in NYC this week…
…about their efforts to have uniform pricing globally (and the no discounting policy) I do wonder what effort is any will be made by the brands to ensure net to consumer pricing remains relatively uniform across markets. Not holding my breath, but given t...
I think the industry have painted themselves in a corner, really.
It’s hard to see how they can increase the prices globally, seeing how much increase has already taken place of late, without deflating demand. Especially in a shaky economic environment where people will naturally restrict discretionary spending. They mi...
Sure.
Buy the watch in Canada and wear it home. Have the retailer, who has just become your good buddy , send the "collapsible box" (listening, Switzerland?) and the warranty card from his home to your home in a manilla envelope. I mean: what are friends for?
Potential new business model for the major brands…
Pick up your watch order in Switzerland. Throw in a factory tour, some fine chocolate and champagne at 5% premium or no additional charges. Collectors saved on nearly 40% tariff charge and get a customised red carpet service. Only a small matter of “decla...
To whomever suggested raising prices everywhere else by 31%.
I'm quite sure the manufacturers would love that as whilst in the US that 31% is going to the government not them elsewhere that 31% would go to them. Now I wonder if you can work out just what the customers and buyers of their watches would feel about th...
Well said!
Good luck to the watch companies trying to increase prices in the rest of the world by 31%, or anything close to that, at a time of economic downturn.
Hopefully, Trump and his advisors have studied history
The Smoot-Hawley Act of 1930, pushed by Republicans Willis Hawley and Reed Smoot, aimed to protect U.S. agriculture by imposing tariffs on 21,000 goods. Instead, it greatly worsened the global economic crisis after the 1929 stock market crash. Around 30 f...
Seeing what foolish things they did already…. I don’t think they studied anything
If the guy doesn’t even know the difference between ‘ liberation ’ day and INFLATION day ….. that says enough
If you look at the listings…
If you look at the listings he has shown, you can see that he confused VAT with customs duties in some countries. Imports from Switzerland (I am from Austria) for example are to be taxed at 31 percent. This shows that Trump is not interested in so-called ...
He may.
What the tariffs are for is to bring manufacturing back to the United States. He hasn't thought through how many Americans will lose their jobs; how many countries will retaliate; how long it will take to be able to manufacture everything needed for a soc...
Getting to the point, and avoiding psychiatric speculation, the manufacturers will be subsidizing their businesses in the US. Therefore, it’s not that the price of Swiss watches…
…will go up by 31%. But Swiss watches will certainly not be cheaper in the US.
How much of the tariff do you speculate the manufacturers will absorb?
At 31% we’re into retail profit margin levels…
Swiss Watch Exports to the U.S.: Expect Different Numbers in 2025 / website of the Swiss watch industry
If you're interested in export statistics, this is a great place to explore reliable data. www.fhs.swiss
Presumably, in the case of the big brands, it is a US group company which is importing the watches and then distributing to retailers?
So in the case of the big brands they are paying the tariffs and will have to decide how much they want to absorb?
That’s true and many of us Canadians have become well versed in tariffs since the first announcement a couple months ago…
The import wholesale is probably around 55-65% of retail, so the 31% will increase that amount roughly 20%. So wondering how much the manufacturer/wholesaler/importer are willing to absorb? Surely the retailer will not absorb and be the one holding the ba...
If pricing structure stays as is,
then watch prices will be lower in non-USA countries. US citizens might buy watches overseas and try to bring them home (declare or not declare, I don't know). If watch companies try to harmonize pricing worldwide, then consumers in non-USA countries will...