In response to the court's decision, the American leader signed an order to introduce a 'global tariff' of 15%.
The US Supreme Court has overturned Donald Trump's emergency trade tariffs. In a decision made by six votes to three, the court ruled that the president exceeded his authority by using a 1977 law, intended for national emergencies, to impose import tariffs on global trading partners.
Several days later, Trump signed a new order to introduce a 'global tariff' of 15% for all countries. The head of the White House stated that this was a necessary measure against nations that have 'ripped off' the United States for decades. The White House clarified that the measure would be in place for 150 days, starting February 24.
According to The New York Times, since the beginning of 2024, the federal government has collected over $200 billion in tariffs. Millions of these were likely paid by importers of watches made in Switzerland, Japan, and Germany. If the decision remains in effect, they may demand refunds from the federal government.
This decision will benefit Swiss watch manufacturers in the long run, who have already faced pressure on the final cost of their product due to the strong franc and the sharp rise in gold prices. After high tariffs were imposed on goods imported into the US, almost all leading industry brands were forced to raise prices.
Recall that we have been observing changes in the size of trade tariffs since April 2025. In August, the existing 10% tariff was raised to 39%, but after a visit from leading watch industry players to the White House, tariffs were reduced to 15%.
Along with positive feedback (on Friday, shares of LVMH, Richemont, and Swatch Group showed growth), the Supreme Court's decision has another side. In the coming weeks, the watch industry will face a period of uncertainty. It is still unclear what tariff rates watch manufacturers will face, how this might affect logistics, and how and when refunds will ultimately be implemented.
Representatives of the European Union and the UK government stated that they plan to study the decision before announcing any changes in trade policy.