Swiss watches will face some of the highest U.S. tariffs at 31%—and its ripple effects will change the industry's dynamic

A man takes a picture of a giant model replica of a new Rolex land-dweller model (Credit: FABRICE COFFRINI—AFP/Getty Images)

Steep U.S. tariffs are set to hit Switzerland and its marquee watchmaking industry hard following a 31% levy. 

Switzerland, which has famously stayed neutral on most matters, including European integration, faces one of the highest levies on the continent. Its top business lobby has described the levies as “harmful and unjustified.”