Swiss watch industry seeks U.S. tariff exemption, citing market needs

Georges Kern, CEO and co-owner of Breitling, is spearheading an effort by the Swiss watch industry to secure an exemption from U.S. customs duties. Kern argues that the U.S. does not need to protect the Swiss watch sector, as it lacks domestic production capabilities in this area. He believes that exempting Swiss watches from tariffs would benefit American consumers through lower prices, reduce the tax burden on companies, and allow U.S. manufacturers to invest more.

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tariffs are protectionism, but there are sectors that Americans do not need to protect, because they simply do not have them.

The U.S. market is described as the only one currently experiencing significant growth. Despite existing tariffs, Breitling and other Swiss watchmakers have invested heavily in the U.S. They have already received full refunds for tariffs imposed in 2025, which were later invalidated by the Supreme Court. However, as of Friday, Swiss watch exports to the U.S. are subject to a new 12.5% tariff.

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Swiss watches are part of it. It would be fair to exempt these sectors from customs duties.

Kern stated that the industry has been dealing with these tariffs for about a year and is adapting. He emphasized the need for two years of stability to allow for pragmatic improvements. He previously argued in Newsweek that tariffs on products not manufacturable in the U.S. are "absurd," increasing living costs for Americans without creating jobs or boosting industrial capacity, unlike exemptions granted to Scotch whisky and coffee.

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The American market is the only one that is booming.