Swatch Group CEO Critiques Switzerland’s Customs Strategy Amid U.S. Tariff Dispute
By DPA
Published: September 14, 2025
In a recent interview with the Swiss newspaper “NZZ am Sonntag,” Nick Hayek, the CEO of Swatch Group, expressed strong criticism of Switzerland’s approach to the ongoing customs dispute with the United States. Hayek’s remarks come at a time when the Swiss watch industry faces significant challenges due to U.S. tariffs and a downturn in the Chinese market.
A Call for Stronger Measures
Hayek proposed a bold solution to the customs conflict: imposing a 39% export duty on gold bars sent to the U.S. He argued that such a move would send a “clear and strong message” to American authorities. This suggestion highlights the growing frustration among Swiss businesses regarding the perceived passivity of their government in addressing trade issues.
Historically, Switzerland has maintained a reputation for neutrality and diplomacy in international trade. However, as global economic dynamics shift, the need for a more assertive stance has become increasingly apparent. Hayek’s comments reflect a broader sentiment among Swiss manufacturers who feel that their interests are not adequately represented in negotiations with the U.S.
Navigating Tariffs with Price Adjustments
In response to the tariffs, Swatch Group is implementing flexible pricing strategies across its brands. Hayek indicated that price increases ranging from 5% to 15% are planned for the U.S. market. For instance, the popular MoonSwatch Moonshine Gold will see its price rise from $400 to $450. Despite these increases, Hayek noted that American consumers continue to show strong demand for Swatch products, with a reported sales growth of approximately 5% in local currency by the end of August.
This resilience in the U.S. market stands in stark contrast to the challenges faced in China, where Swatch has experienced a significant downturn. The Chinese market, which previously generated over $2.5 billion in sales, has seen a staggering 30% decline, resulting in an estimated loss of $750 million. This downturn underscores the volatility of global markets and the interconnectedness of economic conditions across regions.
The Impact of the Chinese Market
The slump in China has been a major concern for Swatch Group and other luxury brands. Hayek acknowledged that while there are signs of recovery in China, particularly in duty-free channels and neighboring markets like Canada and Mexico, the ongoing challenges in the Chinese real estate sector continue to weigh heavily on sales. The luxury market in China has been particularly sensitive to economic fluctuations, and brands are now focusing on enhancing their distribution networks to better serve this critical market.
Commitment to Stakeholders
Despite the pressures from the stock market and external economic factors, Hayek firmly stated that a withdrawal from the stock market is not on the table for Swatch Group. He expressed concern over a “certain stock market mentality” that prioritizes share prices over the long-term success of the company. Hayek emphasized the importance of considering the interests of all stakeholders, including employees, partners, customers, and shareholders. He reassured shareholders that they would continue to benefit from regular dividends, reflecting the company’s commitment to shared success.
A Provocative Response to Tariffs
In light of the ongoing tariff situation, Swatch recently launched a campaign titled “What if … Tariffs?” This initiative is seen by Hayek as a “positive provocation” aimed at sparking dialogue about the complexities of international trade. He criticized the hypocrisy often found in political discussions surrounding tariffs and trade, suggesting that a little disruption could be beneficial in prompting necessary changes.
Conclusion
Nick Hayek’s candid remarks about Switzerland’s customs strategy and the challenges facing Swatch Group highlight the complexities of navigating international trade in an increasingly interconnected world. As the company adapts to rising tariffs in the U.S. and a declining market in China, its leadership remains focused on balancing stakeholder interests while advocating for a more proactive approach to trade negotiations. The future of the Swiss watch industry may depend on how effectively it can respond to these evolving challenges.
