Trump’s Tariffs Won’t Spare Even the ‘American Made’
Plus: Bill Cassidy is sorry about all that.
PRESIDENT DONALD TRUMP IS ONCE AGAIN unilaterally imposing tariffs affecting the imports of dozens of countries, and just like last time, the new levies are being applied so haphazardly that they could inflict considerable damage to American industries.
The latest round of import taxes affects one country in particular that watch enthusiasts had earnestly hoped might be excluded: Switzerland, imports from which will now carry a new 39 percent tariff. I understand that this news might inspire you to reach for the world’s smallest violin, but before you give yourself over to mocking the sorts of people who are in the market for timepieces that sometimes cost more than minivans, consider how this extra strain on the complex Swiss watch industry could also hurt American companies.
The new tariff rates mean that a watch with a $10,000 sticker price would now cost closer to $14,000 even before taxes and shipping fees are added. As Andy Hoffman at Hodinkee writes,
At 39%, the tariff level imposed on Swiss goods, that excludes pharmaceuticals, is among the highest in the developed world. Other watch making countries including Japan and Germany—as part of the European Union—are facing U.S. tariffs of 15%. With demand for Swiss watches in Europe and China waning, the U.S. market has been a key industry growth driver for the past five years with about 20% of the industry's exports going to the U.S.
But don’t look at this from the perspective of an executive at say, Rolex. Hoffman added, “entry and mid-level priced brands will likely be affected more strongly by the significant shift in U.S. trade policy.”
And there are consequences for American watchmakers, too. Consider: Shinola watches are assembled in Michigan, but the company