Why did Swiss watchmakers rush to ship goods before the tariff deadline?

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Swiss Watchmakers Rushed Shipments to Avoid New US Tariffs

Swiss watchmakers expedited shipments of high-end timepieces to the United States in the days leading up to the implementation of a new 39 per cent tariff. This surge in exports was a strategic move to circumvent the increased import duties that took effect on Thursday at 0400 GMT. Companies like DuBois et fils accelerated their shipping schedules to ensure their products cleared US customs before the deadline, as the new tariff rate significantly exceeded the previous 10 per cent baseline.
Frontloading Exports to Beat Tariff Implementation

The primary driver for the rush was the impending 39 per cent US tariff on imports from Switzerland, which was substantially higher than the 10 per cent rate in place since April. Manufacturers, including DuBois et fils, which has a history dating back to 1785, moved to dispatch goods from factories near Basel on Monday to avoid the new import tax. This proactive measure aimed to protect their profit margins and maintain existing pricing structures for US consumers, as the tariff was set to dramatically increase the cost of Swiss watches.
Impact on Pricing and Market Strategy

The newly imposed tariffs, combined with currency fluctuations such as a weaker dollar against the Swiss franc, were estimated to make Swiss watches approximately 65 per cent more expensive for American buyers. Thomas Steinemann, CEO of DuBois et fils, indicated that his company would not absorb this cost increase and would need to recalculate prices, leading to the blocking of new orders on their US website. Similarly, vintage watch dealer Davidoff Brothers stated the 39 per cent tariff was a "hammer blow" that effectively rendered the US market unviable for their exports, forcing a pause on American sales and a focus on domestic markets.
Broader Industry Repercussions and Market Adjustments

The wider Swiss watch industry, encompassing renowned brands like Rolex and Patek Philippe, is also facing significant challenges due to these tariffs. The US represents a substantial market, accounting for 17 per cent of Switzerland's total watch exports worth 26 billion Swiss francs (US$32 billion) in the previous year, according to the Federation of the Swiss Watch Industry. As a result, many Swiss watchmakers are planning price adjustments, temporarily halting orders to the US, and actively exploring alternative international markets to mitigate the impact of the new trade policy.

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Why did Swiss watchmakers rush to ship goods before the tariff deadline?

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