Trump’s tariffs send Watches of Switzerlands shares down 15%

Luxury watch retailer Watches of Switzerland has experienced a sharp decline in its share price following the announcement of new tariffs on Swiss imports to the United States.

The Leicester-based company’s stock dropped by more than 15% at the time of the announcement, reflecting investor concerns over the impact of the tariffs on its business operations.

The US government has introduced a 31% tariff on all Swiss imports, singling out Switzerland as a significant contributor to trade imbalances.

This move directly affects Watches of Switzerland, a retailer specialising in high-end Swiss timepieces, making it more costly to import its core products.

Swiss-made watch brands offered by Watches of Switzerland include Rolex, Patek Philippe, Breitling, TAG Heuer, and IWC.

In response to the new tariffs, the company may consider raising prices for U.S. consumers, adjusting its supply chains, or renegotiating supplier agreements.

With North America representing a significant share of British luxury exports, the tariffs present a notable challenge for retailers dependent on Swiss-made products.

As of Thursday’s market close, Watches of Switzerland’s share price was down 13%.