Trade War Trouble: How the U.S.-Swiss Conflict Is Shaking Up Swiss Watch Exports and Online Retailers Like ShopGalaxy.ch
The luxury watch industry, one of Switzerland’s most iconic economic sectors, is facing serious disruption. The United States has imposed a striking 31% tariff on Swiss imports—much higher than the 20% tariff on European Union products and 10% on UK goods. While trade officials work behind the scenes, the fallout is already being felt across the industry. Online retailers like ShopGalaxy.ch are especially exposed, as they rely heavily on international sales and price-sensitive buyers.
The U.S. Market: A Pillar of Swiss Watch Exports
The United States is the largest single destination for Swiss watches, accounting for approximately 16.8% of total exports in 2024. In monetary terms, that’s about CHF 4.4 billion worth of timepieces. This market has always been vital to Swiss watchmakers, but its importance has only grown as demand in China has weakened. In fact, Swiss watch exports to China dropped by 25% in the same year. Losing momentum in the U.S. could represent a serious economic blow.
Sources: Hodinkee, Reuters, Fratello Watches
Tariff Impact: Retailers Caught in the Crossfire
For online platforms such as ShopGalaxy.ch, which specializes in selling premium Swiss watches, the impact of the new tariffs is immediate and multidimensional.
First, the increased costs mean Swiss watches are now far more expensive for U.S. buyers. A 31% tariff adds hundreds—or even thousands—of dollars to retail prices. Retailers are caught in a difficult position: either pass those costs on to customers and risk losing sales, or absorb them and see profit margins vanish.
Second, supply chains have been disrupted. Anticipating the policy, many brands rushed their exports to the U.S., leading to logistical bottlenecks and uneven stock levels. For online sellers who depend on precise inventory management and quick shipping, this is a serious challenge.
Third, profit margins are under pressure. Online sellers like ShopGalaxy.ch must rework their pricing models to stay competitive while also managing tighter budgets for marketing, logistics, and customer support. In the luxury goods sector, where brand perception and customer service are everything, these pressures are even more intense.
Sources: Bloomberg, AP News, Fratello Watches
A Governmental and Industry Response
In response to the escalating trade tensions, the Swiss government has opened discussions with U.S. counterparts in an attempt to renegotiate or reduce the tariffs. Industry leaders, meanwhile, are exploring new markets and digital strategies to diversify their customer base and avoid overdependence on the American market.
Some brands are turning toward e-commerce platforms that target Southeast Asia, the Middle East, and even Africa. Others are leaning into omnichannel strategies to retain loyal customers while expanding visibility across borders.
Sources: Reuters, Hodinkee
The Case of ShopGalaxy.ch: Digital Agility Meets Global Headwinds
ShopGalaxy.ch, a Swiss-based online retailer known for its curated catalog of Swiss watches, has been directly impacted. The platform reports slower U.S. sales, longer delivery timelines, and more customer hesitation due to price fluctuations. While specific sales data is not publicly available, early trends suggest a noticeable shift in purchasing behavior since the tariff was enacted.
To cope, ShopGalaxy.ch is emphasizing its European and domestic markets, launching promotions, and highlighting models under tariff thresholds or from alternative origins. But the long-term success of these strategies will depend on how long the trade conflict persists—and whether U.S. consumer demand rebounds.
Conclusion
The U.S.-Swiss trade war has shaken up a traditionally stable and high-value industry. For Swiss watchmakers, the American market is too valuable to lose. For online sellers like ShopGalaxy.ch, the challenge is survival in a global landscape where political decisions have immediate business consequences.
As the situation evolves, Swiss brands and retailers alike must adapt with speed, creativity, and resilience—traits they’ve long been known for in the art of watchmaking itself.
Note: Specific sales figures from ShopGalaxy.ch were not available at the time of writing, but their challenges reflect broader trends observed across the industry.
