How will you reach 39 % of the Swiss customs tariffs to prices

American buyers of Swiss products, from luxurious watches and skin care to craftsmanship, can soon face a sharp rise in prices if negotiators cannot conclude a deal to avoid customs tariffs by 39 % of scheduled to enter into force on Thursday.

Announcement last week that Switzerland He faces one of the highest American tariff rates in the world He surprised many politicians, analysts and companies, who believed that the country was about to negotiate a deal similar to that in European Union and UKWhich got the foundation line rates 15 % and 10 %, respectively.

The United States has a huge trade deficit with Switzerland, total $ 38.3 billion in 2024. The Swiss government indicates that the gap is partially due to the latter’s position as the largest gold refining center in the world, with Huge quantities It is the precious metal that passes through the country for treatment before sending it all over the world. Both gold and silver were exempt from the “mutual tariff” policy of the White House launched in April.

The United States is also a major importer of Swiss pharmaceutical preparations, which was an industry Stapled in confusion about the tariff rates you will faceAnd medical devices. Pharma products are currently exempted from 39 % of the fees, although the sector’s tariff may be under the separate part of the United States 232 investigation.

But consumers will often be familiar with the high -end Alps products, from Rolex hours to skin care and excellent beauty products. Sales can be shaken if the tariffs remain 39 % in place for a long time – something Swiss negotiators are currently scrambling to avoidAs economists Warning from a huge blow to growth, jobs and stocks.

The United States was the largest market for Swiss watches in 2024, with a total exports of 4.37 billion Swiss francs ($ 5.4 billion), according to Swiss watchmaking Federation.

To qualify as a Swiss -made, at least 60 % of the cost of the watch production should be on a Swiss basis, while its technical development in the country must be conducted.

“The Swiss watches have long been the cornerstone of the United States market, and the customs tariff will be 39 % as a real behavior,” Paul Altere, founder and CEO of the online re -sale platform, told CNBC.

“Suddenly, every import will carry a huge additional cost, and traders will face difficult options – absorbing customs tariffs, eating in margins, or transferring them to customers. You will likely see longer times as brands and retailers renew logistics services, and the high prices of stickers in all fields.” He pointed out that the retail price in a Rolex submarine can jump from $ 10,000 to approximately 14,000 dollars.

For Swiss watch companies, the 39 % customs tariffs will be “destroyed”, Jean -Felipe Berchi, head of Swiss stock research in Fontopille, told CNBC “SQUAWK BOX EUROPE” on Tuesday.

“They have already increased prices in the spring with an average of 5 to 10 %, and I think another blow would be very difficult for the American consumer for sure, especially for entering the mid -section level.” In a research note, Vontobel has been developed Swach As vulnerable to tariffs, with shares decreased by 2.3 % on Monday.

“For luxury watches, for brands such as Rolex, Patek Philippe and Audemars Piguet, you have some long waiting lists. So I think it will be more comfortable for these companies to increase prices,” continued.

“You have very limited measures that must be taken. You can, of course, increase efficiency and try to do some other measures to face American definitions, but in general, very difficult for the industry.”

Consumer goods giant Nestle It is one of the largest companies in Switzerland. The company says it is facing the minimum direct impact of definitions because it produces more than 90 % of what it sells in the United States locally.

James Edwards Jones, Managing Director of Consumer Research at RBC Capital Markets, told CNBC “Squawk Europe”, this is generally the case for consumers such as instant coffee or bottled water that is large in size, which are low -ticket elements.

However, the famous brand of Nespresso coffee, known as coffee machines at home and capsule pods, can be among those commodities exposed to higher rates and thus high prices.

Edwards Jones added: “In the case of Nestle specifically, all Nespresso is manufactured in Switzerland and then exported all over the world, so it seems likely to be discovered in a small way,” Edwards Jones added.

Nestle did not immediately respond to CNBC’s request to comment on the effect of Swiss graphics. The company does not specify its sales level in the United States for Nespresso, but it is Half of the year results North America has shown a strong dual -number growth rate. “

Lausanne headquarters GaldermaWhile its products include the aesthetics of injection and Cetaphil, at the same time, it said it is not produced in Switzerland and is currently being largely excluded from global tariffs under drug exemptions.

However, its great production capacity in the European Union, the United Kingdom and Canada can be subject to high fees, which may reach consumer costs.

High import duties were also seen raising the price of luxury goods, including Richmont-Style signs, owned by Cartier and Van Cleef & Arpels.

Bofa Securities said in a note on Tuesday that 7 % of the Richemont input costs will be exposed to the high Swiss tariffs, which mostly adds to the high prices of consumers. “The price increases will be the most obvious way to reduce the opposite wind,” analysts wrote.

Richmont did not respond to CNBC’s request to comment at a rate of 39 %, but it was marked in its profits in the first quarter that the customs tariff can lead to “price increase”, which may affect consumer demand.

Lombard Odir noted that a “small part” of luxury exports can see the demand for its products an increase with the price, but prices have been widely assigned to the necessity of demand for the consumer.

Roger Werley, director of the Swiss Swiss Industrialization Association, Chocosis, said that the tariff rate of 39 % will be approved by prices and causes a severe loss of an American company for many members of the group. Latter Estimating the Swiss franc against the US dollarHe pointed out that the effective increase in prices, which causes imports more expensive, means that the effective increase in prices will be closer to 55 %.

Wireley said the main effect will be on small and medium -sized companies unable to benefit from American production sites such as major multinationals. Industry tyrants Lindt & Sprüngli and Barry Calibot It already has factories in the United States, while the younger Chocosuisse members like Camille Bloch and Lädeach are produced exclusively in Switzerland.

“There is another specific problem in production in the United States,” continued Wehrli.

“If you want to name your chocolate as Swiss, it should be produced in Switzerland. It is a high -quality sign in the international market, so you will lose your customers in one way or another if the Swiss origin is no longer.”

The rules of origin forced these Toblerone, owned by an American group Mondeelz Internationaland To change its packages in 2023 To indicate itself as “founded in Switzerland” instead of “Swiss chocolate” after it was transferred some of its production from the Swiss capital Bern to Slovakia. CNBC Mondelez called to comment on the impact of the tariffs on Toblerona in the United States