Swiss watch industry lobbies U.S. for tariff exemption

Breitling CEO Georges Kern is leading a lobbying effort in the United States, urging for tariff exemptions on Swiss watches. Kern argues that since the U.S. does not produce comparable timepieces, these watches do not require protectionist tariffs. This campaign comes as the Swiss watch industry faces a new 12.5% tariff on exports to the U.S., a rate announced recently.

Kern published a guest article in "Newsweek" in early June, titled "Removing tariffs on products not made in America helps the USA." His core argument is that exempting goods like French champagne, Japanese knives, and Swiss watches, which are in demand in the U.S. but not manufactured there, would create a win-win situation. Consumers would benefit from lower prices, companies would face reduced financial burdens, and the U.S. economy could see increased investment.

"The issue with tariffs is protectionism," Kern stated in response to an inquiry. "But there are industries that Americans don't need to protect because they simply don't have them. Swiss watches fall into this category. Therefore, it would be right to exempt such industries from tariffs." He is not alone in this plea; the entire industry supports the initiative. Yves Bugmann, president of the Swiss watch federation FH, expressed hope that the idea of exempting Swiss watches from U.S. tariffs, which the industry has pursued for a long time, will succeed.