Swatch releases the "WHAT IF...TARIFFS" model
In a neat bit of subversion from Swatch, the company has released the WHAT IF...TARIFFS? edition, a watch that swaps the 3 and the 9 to nod to the 39% U.S. tariff on Swiss watches.
From the product page:
WHAT IF...TARIFFS? features a square Bioceramic case and edge-to-edge biosourced glass that allows a side view of the watch’s dial. The blue square dial, complemented by an integrated biosourced strap, is adorned with glow-in-the-dark hands. The inversion of Arabic numerals 3 and 9 on the dial subtly references the number 39. Paired with the percentage symbol found on the battery cover, this inversion hints at the US tariffs imposed on Switzerland and the deeper narrative woven into the watch’s design.
Want to pick one up? You will have to fly to Switzerland. They are not selling them in the U.S.
Everyone’s favorite fashion guy, DieWorkwear on Twitter, posted a clear breakdown of who these tariffs will hurt, and it is not Switzerland:
The tariffs stand to do real damage to the US watch industry, which is largely comprised of retailers.
Will show you how: People who purchase luxury watches often do so under the assumption that the watch stores a certain amount of value. This is partly why Rolex is so popular — customers think that, when they go to resell their watch, they can get a good percentage of their outlay back, perhaps even earn money. Tariffs put pressure on retailers to raise prices. So if a watch retails for $6k, a retailer might have to sell it for $8k because of the tariffs. But what happens when the tariffs come down? (If they ever do). The retailer can't easily go back to $6k because the customer who bought at $8k is going to be pissed. You are destroying his value if he ever decides to resell. But if you stay at $8k, you have an inflated price that doesn't actually reflect the market clearing price. Perhaps you don't care about luxury watches and think they're superfluous. But thousands of normal, working class people earn their income off watch retailing, and those people could lose their jobs.
Replace “could lose their jobs” with “will lose their jobs,” and he is right. Maybe you do not care about luxury watches. Jobs still matter. Thousands of working people make a living in watch retail and service. Those people will lose their jobs.
If we want lower prices in cars, groceries, and phones, we cannot let blunt tariffs chew into margins and reset base prices for everything from Jamaican coffee to Korean phones. Watches may be a small thing, but they show why idiots should not make monetary policy.