Collective Horology Discusses the Impact of Tariffs on the American Watch Industry

In the most recent episode of their phenomenal Openwork podcast, our friends at Collective Horology tackled the elephant in the room. That’s right, they discussed the whopping 39% tariffs the U.S. just slapped onto Swiss imports. 

There are two major categories of goods that the Swiss export to the U.S.: pharmaceuticals and watches and watch components. Of course, one of those affects us a bit more than the others, at least in terms of our business. Around the 21:56 mark, Gabe and Asher specifically mention Oak & Oscar and fellow U.S.-based watchmaker J.N. Shapiro in the context of importing Swiss movements and other components into the U.S. 

If they stand, these tariffs will affect virtually every aspect of the watch industry. The cost of producing a watch will now be 39% more expensive than it was just a short time ago. But that’s not all. As Gabe and Asher point out, there are many other aspects of American watchmaking that will be reshaped by the tariffs and rising costs. For example, the Swiss watch industry actually employs a large number of American watchmakers through their U.S.-based service centers. It stands to reason that increased costs will have an effect on this aspect of the industry, too. 

This is new territory, and it remains to be seen how all of this will play out. How are we going to handle it? We don’t know yet. What we do know is that, as a small operation, our margins are tight, and we can’t simply absorb an increase of this magnitude. And we don’t have a spare $10 million to start manufacturing our own movements either. We also know we’ll be having tacos for lunch. 😉 🌮

One thing is for certain. These new trade policies will dramatically affect how the American watch industry operates. 

You can listen to the entirety of Collective’s podcast here. Stay tuned for more!