Swiss watchmaker Swatch launches limited-edition ‘WHAT IF…TARIFFS?’ watch as a provocative response to US import tariffs, highlighting the escalating trade disputes and their impact on Switzerland’s iconic industry.
Swiss watchmaker Swatch has launched a limited-edition watch model named “WHAT IF…TARIFFS?” as a pointed response to the 39% import tariffs imposed by U.S. President Donald Trump on Swiss goods. The watch features a playful twist on its dial, reversing the positions of the numbers three and nine as a satirical reference to the steep tariff. Retailing at 139 Swiss francs ($174), this model debuted in Switzerland and quickly sold out, with the company reporting strong demand and delivery delays of up to two weeks.
The move is more than just a marketing stunt; it represents a “positive provocation” from Swatch aimed at both raising awareness and pressuring Swiss authorities to secure a better trade deal with the United States. A company spokesperson explained that Swatch hopes the tariff situation will be resolved swiftly and pledged to halt sales of the watch as soon as any tariff revisions or removals occur.
These tariffs, among the highest implemented by the Trump administration globally, took effect in August 2025 and have sent shockwaves through Swiss industries significantly reliant on the American market. Switzerland’s watch industry is particularly vulnerable, as the U.S. accounted for 16.8% of Swiss watch exports last year, valued at roughly 5.4 billion Swiss francs. Industry leaders, including Swatch Group CEO Nick Hayek, have expressed optimism that diplomatic efforts may yet avert long-term damage. Hayek, while acknowledging the initial market shock—including a drop in Swatch’s share price—urged Swiss President Karin Keller-Sutter to intensify negotiations in Washington, emphasizing the United States as one of Swatch’s strongest and fastest-growing markets.
The Swiss government is actively pursuing talks to reduce the tariffs, though recent attempts—such as a proposal to cut tariffs to 10%—have been rejected by U.S. officials. Swiss President Keller-Sutter reaffirmed the importance of ongoing dialogue, even as the tariffs threaten to undermine key Swiss sectors like luxury watches, cheese, and chocolate. Economists warn that if prolonged, these tariffs could trim Switzerland’s GDP by as much as 0.6%, though a full recession is not yet predicted.
The trade tensions come against a backdrop of Switzerland’s commitment to free trade, having eliminated nearly all import tariffs in 2024. Meanwhile, some Swiss industry voices have suggested retaliatory measures, including a controversial proposal by Hayek to impose a 39% export tax on gold destined for the U.S., a significant Swiss export. This idea has met resistance from the Swiss Association of Manufacturers and Traders in Precious Metals, which warned it could damage Switzerland’s economy and jeopardize its trade openness.
Financial analysts and industry insiders have criticised the tariffs as harmful and arguably counterproductive, pointing to declining Swiss watch exports to the U.S., which fell 18% year-over-year in June 2025 amid these trade frictions and a weakening dollar. Major watch brands like Richemont and Watches of Switzerland are attempting to mitigate impacts by ramping up shipments ahead of tariff enforcement and utilising strong demand to soften the blow. However, steep tariffs risk increasing retail prices and reducing sales volumes in the influential U.S. market, with luxury brands including Rolex and Patek Philippe potentially facing challenges.
Swatch’s satirical watch release thus serves as both a sharp commercial statement and a call to action, reflecting the broader tensions in Swiss-American trade relations. The company insists the tariff scenario is unsustainable and hopes it will be short-lived, committing to discontinue the “WHAT IF…TARIFFS?” model immediately upon any easing of U.S. customs duties. Until then, the watch stands as a cheeky symbol of resistance from one of Switzerland’s most iconic global brands.
Source: Noah Wire Services
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