Swatch Group CEO Nick Hayek has criticized Switzerland’s “defensive” stance in the customs dispute with the U.S. In an interview with the “NZZ am Sonntag” newspaper, he proposed 39% export duties on gold bars to the U.S. as a strong signal: “That would have sent a clear and strong message to the U.S.”

In operational terms, the group is responding to the U.S. tariffs with flexible price and margin management: depending on the brand, price increases of 5% to 15% are planned in America. “Then, of course, there are products that American consumers simply want, such as the MoonSwatch Moonshine Gold, which now costs $450 instead of $400” said Hayek.

Americans continued to buy – despite price increases. According to Hayek, sales growth in local currency in the U.S. business at the end of August across all brands was around an increase of 5%. “Things are booming in the U.S.,” he said

China slump weighs on group sales

Globally, however, the group is down on the previous year, mainly due to the slump in China: “If a market with sales of over 2.5 billion slumps by 30% then according to Adam Riese, 750 million is immediately missing,” said the Swatch CEO.

He sees demand stimuli from Canada, Mexico and duty-free channels (including cruises), among others. Swatch and other brands are also showing initial signs of recovery in China, although the real estate market is a burden. Hayek admits that luxury brands need to catch up in terms of distribution and announces significantly more own stores in the U.S.

No stock market withdrawal – focus on stakeholders

According to Hayek, a withdrawal from the stock market is not up for discussion. However, he is bothered by a “certain stock market mentality” that only measures the success of a company by its share price. Hayek emphasizes that the board of directors takes into account the interests of all stakeholders – employees, partners, customers and shareholders. The latter participate in the company’s success through regular dividends, he emphasized.

The “What if … Tariffs?” Swatch recently launched in response to the Trump tariffs is seen by Hayek as a “positive provocation.” According to the Swatch CEO, there is a lot of hypocrisy in politics and “a little shake-up” doesn’t hurt.