The U.S. and Switzerland have agreed to cut American tariffs on Swiss imports—including watches—from 39% to 15%, a major relief for the Swiss watch industry. While the timeline remains unclear, officials suggest the new duty may not take effect until early 2026.

 Industry experts say the reduction will prevent significant retail price hikes, especially after brands stockpiled inventory and raised prices to offset the earlier 39% rate. The steep tariff had already caused U.S. imports of Swiss watches to plunge 56% in September. The lower rate is expected to restore stability and demand. The US will apply either its “most favored nation” tariff rate or a levy of no more than 15% on products originating in Switzerland and Liechtenstein, the White House said in a statement.

So far, the US, Switzerland and Lichtenstein agreed only to a “framework” in which they have pledged an intention to negotiate a full agreement. This deal will call for Switzerland to promote investment in the US, buy more of its goods, and reduce its own tariffs on American merchandise.

The agreement comes a week after President Trump met with the heads of several Swiss companies in the White House, including Jean-Frederic Dufour, the CEO of Rolex; Johann Rupert, chairman of Richemont; and Alfred Gantner, co-founder of Partners Group, which owns Breitling.