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US Tariffs on Switzerland
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Evitzee
·It's all negotiations and subject to change, I wouldn't be panicking. Trump is called TACO (Trump Always Chickens Out). Yesterday he got hammered in the US Court of Appeals as to whether he even has the authority to be meddling in tariffs on the patently absurd idea that the US is in an emergency situation centered around fentanyl and trade deficits. It's headed for the Supreme Court and it may all be chucked out. The July Jobs report came out today, poor showing on the jobs front. Unemployment moved up. Market sharply down. The rubber is now hitting the road. Remain calm, but strap yourself in. TICK TACO, TICK TACO.
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p4ul
·
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pdxleaf
·...Bad timing from the watch company ?
The Tariff is paid on the wholesale price, not the retail price, so it's effect will be less.
It's been reported that Rolex is requiring their distributors absorb any tariff, which reduces the profit margin, but isn't felt by the consumer. I have no idea if this is true.
The tariffs may not be 31%, but there's a flat 10% (or 15%) that is in effect. Some non-watch companies have begun increasing their costs, rather than continuing to absorb them, which trends towards inflation. Watch manufacturers may not be able to continue to absorb the tariffs.
The effects on the pre-owned market seem to be higher than the new market, at least for now. I read concern from USA buyers of used watches from Japan, as well as Canada and Europe. Not knowing how much a tariff will be has a similar impact of high tariffs, even if not yet implemented. If others are like me, they have stopped thinking of buying pre-owned from Japan.
In response to the OP, yes, it seems to me that the tariffs will reduce watch sales. And raising prices right before the slow down was also bad timing. The high cost of the CHF relative to foreign currencies also has to be affecting Swiss manufacturers, (although it's been said that as little as 40% of Swiss watches are actually made in Switzerland, which reduces the impact of the high CHF).
This will have a snowball effect. The slow down is here, with consumer's holding back on purchases. If manufacturers won't be able to continue absorbing the tariff and eventually raise prices, that will slow the market further. The USA is not going to fully eliminate tariffs for the next three years. Maybe tariffs won't be 39%, but they'll be 15 or at least 10%, plus a 10% loss in purchasing power due to exchange rates. Not to mention higher costs elsewhere in the budget.
But this is one person's opinion, and frankly, the impact to the Swiss watch industry is the last thing that keeps me awake at night.
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watchyouwant
·It's fun to watch Agent Orange to proudly show off the Sharpie Signature under stuff, that can be undone by the next one . But whenever that might happen, the USA will be damaged beyond fixing worldwide . The US $ and the Bonds will be no longer the Gold Standard. Which means, the USA will have to pay a lot , lot more for Loans in the future. The rest of the World will establish a new Trade Regime , that just circumvents the USA. Asian Manufacturers will lower the prices a bit and swamp the Rest of the World with cheap products; enjoyed by all of us. Except the Consumer in the USA. " Un-Truth Social" followers will have to buy a lot more Right Wing Merchandise ( Made in Asia ) , to keep the Republicans afloat. And Musk's new Party does not help to stabilise the old Order. As long as you don't get Money out of Politics, the richest Person will be President . And working tirelessly for the benefit of the Masses ... Will be Fun to watch .
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pdxleaf
·... Will be Fun to watch .
It may not be as much fun as you hope.
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JPE.88305
·Yeah not fun on the daily front of living in the US. Everything is just exorbitantly expensive...toothbrushes for $6...bags of water softener salt for $9...a 6pack of MichUltra for $12. My watch budget is shredded.
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Russ Murray
·It's fun to watch Agent Orange to proudly show off the Sharpie Signature under stuff, that can be undone by the next one . But whenever that might happen, the USA will be damaged beyond fixing worldwide . The US $ and the Bonds will be no longer the Gold Standard. Which means, the USA will have to pay a lot , lot more for Loans in the future. The rest of the World will establish a new Trade Regime , that just circumvents the USA. Asian Manufacturers will lower the prices a bit and swamp the Rest of the World with cheap products; enjoyed by all of us. Except the Consumer in the USA. " Un-Truth Social" followers will have to buy a lot more Right Wing Merchandise ( Made in Asia ) , to keep the Republicans afloat. And Musk's new Party does not help to stabilise the old Order. As long as you don't get Money out of Politics, the richest Person will be President . And working tirelessly for the benefit of the Masses ... Will be Fun to watch .
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Larry S
··Color Commentator for the Hyperbole.Watched the new South Park episode last night. Brutal. I laughed but I don’t feel any better. Met with our JPM advisor this morning. These tariffs are so full of holes and exceptions, it’s difficult to predict what’s going to happen. JPM has also been quite upfront about their low opinion of the economic geniuses in this administration. That has not changed.
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iamvr
·Doesn’t seem like the rate will be lowered from 39% to 10-15% as some suggest if you believe that guy.
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Dan S
·I don't know how these things show up in statistics, but I am seeing some huge price increases in commodity items, never mind discretionary/luxury items. At Home Depot, I paid about $10 for a plumbing part that was $4 not so long ago.
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pdxleaf
·I don't know how these things show up in statistics...
There seems to be a disconnect between what is being reported and what people are experiencing. The updated jobs numbers is more in line with our local reality. Plus the increased prices that you mentioned. Anybody else live through stagflation? It wasn't pretty.
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Porteroso
·It's fun to watch Agent Orange to proudly show off the Sharpie Signature under stuff, that can be undone by the next one . But whenever that might happen, the USA will be damaged beyond fixing worldwide . The US $ and the Bonds will be no longer the Gold Standard. Which means, the USA will have to pay a lot , lot more for Loans in the future. The rest of the World will establish a new Trade Regime , that just circumvents the USA. Asian Manufacturers will lower the prices a bit and swamp the Rest of the World with cheap products; enjoyed by all of us. Except the Consumer in the USA. " Un-Truth Social" followers will have to buy a lot more Right Wing Merchandise ( Made in Asia ) , to keep the Republicans afloat. And Musk's new Party does not help to stabilise the old Order. As long as you don't get Money out of Politics, the richest Person will be President . And working tirelessly for the benefit of the Masses ... Will be Fun to watch .
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Foo2rama
··Nowhere near as grumpy as he used to be...Obviously MACA means returning watch production to the US.
Make American Chronometers Again.
Yeah I’ve already passed on 2 items for sale due to the 20% fall of the USD vs non US tied currencies.
I’m guessing a lot of the stock market rebound was many countries getting US stocks at a nice 20% discount on top of the 20% dip effectively getting 40% off on US stocks.
Still pissed about the Alaska Project III I had to pass on as the 20% price hike from the US to CHF exchange rate made the piece make no sense.
Then a killer Swedish piece just got more expensive with the tariffs. Thankfully Nokia is dead otherwise I hate to see the stupid rate they would have had.
Make American Chronometers Again.
Yeah I’ve already passed on 2 items for sale due to the 20% fall of the USD vs non US tied currencies.
I’m guessing a lot of the stock market rebound was many countries getting US stocks at a nice 20% discount on top of the 20% dip effectively getting 40% off on US stocks.
Still pissed about the Alaska Project III I had to pass on as the 20% price hike from the US to CHF exchange rate made the piece make no sense.
Then a killer Swedish piece just got more expensive with the tariffs. Thankfully Nokia is dead otherwise I hate to see the stupid rate they would have had.
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JPE.88305
·I don't know how these things show up in statistics, but I am seeing some huge price increases in commodity items, never mind discretionary/luxury items. At Home Depot, I paid about $10 for a plumbing part that was $4 not so long ago.
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Archer
··Omega Qualified WatchmakerThere seems to be a disconnect between what is being reported and what people are experiencing. The updated jobs numbers is more in line with our local reality. Plus the increased prices that you mentioned. Anybody else live through stagflation? It wasn't pretty.
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watchyouwant
·Amendment ? Ok ... Here is the take of an Australian Stand Up Comedian , who lives in the USA ( at a Show in Memphis ) , on that. Warning: Language and more ...https://www.facebook.com/share/p/1AgmeE7YUk/?mibextid=ZbWKwL
