Bitter Cost: How 39% Tariffs on Swiss Luxury Goods Will Impact U.S. Consumers’ Wallets
Chocolate, Skincare, and Timepieces: How 39% U.S. Tariffs on Swiss Goods Will Impact Prices
Published: August 5, 2025
U.S. consumers love Swiss products like fine chocolates, quality skincare, and luxury watches. They now face higher prices. The new 39% tariff on Swiss goods takes effect this Thursday unless negotiators reach a fast deal. Here, each word pair links closely to make the text clear and easy to follow.
Background on the Tariff Dispute
News last week shocked many. Switzerland now risks one of the highest U.S. tariff rates. Politicians, analysts, and businesses expected a lower rate. They had seen the European Union use a 15% tariff and the United Kingdom use a 10% rate.
A U.S. trade deficit with Switzerland hit $38.3 billion in 2024. A large part of this gap ties to Swiss gold refining. Gold and silver pass quickly through Switzerland for processing before they move around the world. Imports of these metals do not pay the exchange tariffs.
Pharmaceuticals form another important sector. These products now do not pay tariffs. Ongoing U.S. probes under Section 232 could change rules for some medical devices and drugs later.
Key Sectors Impacted by the Tariffs
Luxury Watches
Swiss watches rank as top exports. In 2024, U.S. buyers spent 4.37 billion Swiss francs ($5.4 billion) on these timepieces. To be called “Swiss-made,” a watch must have at least 60% of its production cost in Switzerland and must be designed there. Experts worry a 39% tariff will push prices high:
- Paul Altieri, CEO of Bob’s Watches, said the price of a Rolex Submariner might jump from $10,000 to almost $14,000.
- Jean-Philippe Bertschy of Vontobel said mid-range Swiss watches may suffer more. Shops and makers could face longer waits and higher costs.
- Top brands such as Rolex, Patek Philippe, and Audemars Piguet may cope better, even though they have long waiting lists.
Coffee Products
Nestlé sees mixed results. Most of its U.S. items come from local plants, so they feel little change. Its Nespresso line is made in Switzerland and could see a small price rise. North American sales of Nespresso grew in early 2025. This growth shows that even small hikes can matter.
Skincare and Beauty Products
Swiss brands in skin care and beauty include:
- La Prairie (with caviar-based anti-aging creams)
- Valmont (used in spa treatments)
- Mavala (in nail care)
Analysts from Lombard Odier say Swiss firms normally cope with tariffs of 10% to 15% without big profit loss. A 39% tariff creates a hard challenge. Galderma, which makes injectable skin products and Cetaphil facewash, produces most of its goods outside Switzerland. This practice keeps it clear of current tariffs but may change in later reviews.
Luxury Goods
High-end jewelers like Cartier and Van Cleef & Arpels face rising costs. Bank of America Securities shows that 7% of Richemont’s input costs are affected by the tariff. Richemont has warned that higher tariffs may lead to increased prices and lower demand. Some luxury brands may see a slight lift if a higher price tag adds to their rare image. Still, most will feel the impact.
Chocolate Industry
Swiss chocolates are well known around the world. The 39% tariff, along with a stronger Swiss franc, may drive prices up by as much as 55%. Small and medium-sized Swiss chocolate makers, such as Camille Bloch and Läderach, may lose many customers if they cannot produce in the U.S. Some giants like Lindt & Sprüngli and Barry Callebaut own U.S. facilities, which helps them cope, but smaller firms do not have that option.
Roger Wehrli from Chocosuisse reminds us that chocolate must be made in Switzerland to keep the “Swiss chocolate” mark. Toblerone had to change its packaging after moving some of its work to Slovakia in 2023. —
What’s Next?
Swiss negotiators work fast to stop the tariffs from starting this Thursday. They know that high tariffs could hurt growth, jobs, and stock values. Economists warn that long tariffs may shake consumer demand and change old trade links, especially in top product groups.
U.S. buyers should get ready for a rise in prices on Swiss goods, from luxury watches and skin products to chocolates and coffee. The coming days will show if negotiators cut the tariff or lessen its effects.
For ongoing coverage and updates on the U.S.-Swiss tariff matter, stay tuned to CNBC.
