As 39% of the Swiss tariffs will reach prices

US buyers of Swiss products, from luxury hours and skin care to chocolate chocolates, may quickly encounter a sharp increase in prices if negotiators cannot make a transaction to prevent 39% of the led to take effect on Thursday.

Proclamation last week that Switzerland face one of the highest tariffs in the world in the world Stunned by numerous politicians, analysts and businesses that thought European Union and UKreceived basic rates 15% and 10% respectively.

The US has a healthy trading deficit with Switzerland, general $ 38.3 billion in 2024. The Swiss government notes that the gap is partly linked to the status of the last as the world’s largest processing center, with huge amounts of precious metal that runs through the country for processing before sending it around the world. Both gold and silver were released from the “mutual tariff” policy of the White House launched in April.

US is also the main importer of the Swiss pharmaceuticals that was Broken in confusion about the tariffs he will faceand medical devices. Currently, pharmaceutical products are released from 39%although tariffs are characteristic of the sector 232 Investigation.

But consumers will mostly be familiar with the Alpine Country high-end products: from Rolex watch-to-see skin care and beauty. Sales can be deployed if 39% tariffs remain in place for a long period – that is something Currently Swiss negotiators are fighting to avoidas economists warns of a mass blow to growth, jobs and stocks.

The US was the largest foreign market in Swiss hours in 2024, and exports worth 4.37 billion Swiss francs ($ 5.4 billion), according to Federation of the Swiss industry.

To get the right to Swiss, at least 60% of the cost of watches should be on the basis of Swiss, while its technical development must be carried out in the country.

“The Swiss hours have long been the cornerstone of the US market, and 39% tariff will be a real shock,” said CNBC Paul Altier, founder and CEO of the Internet Platform for BOB resale.

“Suddenly, every import will have great extra costs, and dealers will face a rigid choice – to absorb the tariff, eat in the margin or pass it to customers. You probably see a longer time when brands and retailers rebuild logistics, as well as higher prices on the sticker all over the board.” He noted that the retail price of the Rolex submarine could move from 10,000 to almost $ 14,000.

For Swiss Watch, 39% would be “devastating”, Jean-Philip Borthai, head of the Swiss VontoBel shares, Squawk Box Europe said on Tuesday.

“They increased prices already in the spring on average 5 to 10%. In the Vontobel research note, Pop up As vulnerable to tariffs, the shares on Monday fell by 2.3%.

“For luxury hours for brands such as Rolex, Patek Philippe and Audemars Piguet, you have a few long waiting lists. So I think for these companies will be more comfortable,” Bertshi continued.

‘You have very limited measures.

Giant of folk goods Nestlé is one of the largest firms of Switzerland. The company says it faces minimal direct impact of tariffs because it produces more than 90% of what is sold at the US locally.

Usually this happens for consumer brackets, such as instant coffee or water in bottles, which are a large volume, low tickets, James Edward Jones, Head of Consumer Studies in RBC Capital Markets Markets.

However, its popular Nespresso coffee brand, known in home coffee machines and capsule pods, may be among the goods that are higher, and therefore at the cost.

“Specifically, in the case of Nestle Nespresso, it is made in Switzerland, and then exported worldwide, so it will probably get into a small path,” Edward Jones added.

Nestle did not immediately respond to CNBC’s request for a comment on the impact of Swiss fees. The company does not indicate its level of sales in the US for Nespresso but its Results of six months It is shown that North America has grown at a “strong double -digit speed”.

Lausanne, outdated LdermThe products of which include injection aesthetics and Cetaphil Facewash, meanwhile, said it does not produce in Switzerland and is now largely excluded from global tariffs when released from pharmaceuticals.

However, its great production potential in the European Union, the United Kingdom and Canada may be subjected to raising the consumer spending potentially.

Also observed higher duties on imports, which pushes the price of luxury goods, including Richemont-The high -end Cartier jewelry and Van Cleef & Arpels jewelry.

On Tuesday, Bofa Securities said 7% of Richemont contributions would be exposed to higher Swiss tariffs, which is likely to add higher consumer prices. “The price increase would be the most obvious way to soften the wind,” analysts write.

Richemont did not respond to the CNBC request for a commentary on the rate of 39%, but it is indicated in the first quarter income that tariffs can lead to “raising prices”, which could affect consumer demand.

Lombard Oder noted that a “small proportion” of luxurious exports may notice that demand for their products is increasing with the cost, but in general the hikes were harmed by consumer demand.

Roger Verley, director of the Swiss Chocolatiers Production Association, said the 39% tariff rate would be transferred at prices and will lead to a steep loss of US business for many members of the group. Recent Thanking to the Swiss Franco against the US dollarWhich leads to the fact that imports have become more expensive, means that an effective increase in prices will be closer to 55%, he noted.

The main impact will be on small and medium -sized businesses that are unable to use US production sites such as large transnational companies, Verley said. Industrial Jungernaut Lindt & sprüngli and Barry Calebaut There are already factories, while smaller members of Chocosuse, such as Camille Flea and Leders, are produced exclusively in Switzerland.

“There is another specific problem with the US production,” Verlay continued.

“If you want to specify your chocolate as a Swiss, it should be made in Switzerland. This is a quality sign on the international market, so you will lose more customers, if it is no longer a Swiss origin,” Verlie CNBC said.

These origin rules make Toblerone belonging to the American Group Mondelez International. To change your package in 2023 Appointment as “created in Switzerland” rather than “Swiss chocolate” after it transported part of its production from the Swiss capital Bern to Slovakia. CNBC contacted Mondelez to comment