Column: US Open with Rolex versus the irony of Swatch and Raymond Weil

That the 39 percent tariff There is no doubt that the reduction in exports to the USA has put the Swiss watch industry in a precarious position. A common Swiss response to this is already clearly revealed in the official export statistics.

Picture left: @Robert Deutsch/IMAGO

From the time it was announced in early April until the tariff hammer came into effect on August 7, the US warehouses were filled quickly. unprecedented increases in Swiss watch exports into the land of unlimited possibilities.

Furthermore, every watch manufacturer seems to be having its own thoughts on how to handle the situation. These have now led to starkly contrasting measures from two of the industry's biggest players.

Firstly, there's the giant and tennis sponsor Rolex, whose CEO Jean-Frédéric Dufour invited US President and golf enthusiast Donald Trump to the US Open final on September 7th and spent many hours with him in the Rolex lounge.

Rolex, Trump and the US Open

This put him far ahead of Swiss Economics Minister Guy Parmelin, who had to settle for Trump's ministers during his recent US visit. The priorities of the luxury-loving POTUS, who also wears Rolex, were once again clearly evident: arduous negotiations and meetings with politicians rank below an illustrious afternoon in a box seat with the head of a top luxury brand.

Which sport is on offer probably plays a secondary role. Without Dufour's invitation, Trump would probably have spent Saturday at one of his golf courses.

Trump isn't exactly known as a tennis fan. Nevertheless, he was the first sitting US president in 25 years to attend a Grand Slam final at Flushing Meadows in New York City. This was met with boos from quite a few serious tennis fans in the stadium due to the delays caused by his presence.

Now, it can be assumed that the Rolex CEO probably wouldn't have extended the invitation without the US President's current customs escapades. He hasn't in recent years, either. Neither to Trump nor to any other US president.

I suspect that Dufour's time in the box with the 79-year-old wasn't exactly easy. Without knowing him personally, I assume the Swiss is deeply rooted in democratic and liberal thinking. Unlike the self-proclaimed dealmaker Trump.

And the Swiss export industry, including watch manufacturers, is hoping for a deal. It is unknown whether the Rolex CEO addressed the tariff disputes during the meeting. Let alone whether he was able to persuade Trump to reconsider by asking for a reduction in Swiss tariffs.

And even if it were, statements and decisions à la Trump usually have a short half-life. Until the next flatterer and whisperer comes along and convinces him of the opposite with much praise.

Such behavior makes me deeply uncomfortable – even if Jean-Frédéric Dufour's supposed goal is honorable: saving the important US market for the Swiss watch industry. To achieve this, he apparently accepted the company of Donald Trump for several hours. This meeting was neither announced to nor coordinated with the Swiss Federal Council. Let alone had Economics Minister Guy Parmelin been invited. It was a Rolex mission on its own behalf. Legitimate. But was it also successful?

There's no doubt that Dufour is capable of success. In his ten years in office, he has transformed Rolex into the industry leader and led it to the pinnacle of the luxury watch world.

Does Rolex need this?

This raises the question for me: Does Rolex really need to get involved with Donald Trump? Even if it's only for a few hours. Especially since, given the US president's fickleness, his promises in the box at a tennis stadium probably won't be worth much.

For me, this action has seriously damaged the image of a company that otherwise acts with social responsibility.

Rolex is known for its commitment to sport, culture, art and science, "and supports those who work to preserve our planet. The company's products, which act with commitment and responsibility, are designed for longevity. In the pursuit of excellence, Rolex strives daily to improve not only its watches, but also its environmental sustainability and social impact." This is how the watch manufacturer describes itself on its website.

Such a description hardly applies to Donald Trump. Instead, he is a master of misogyny, racism, hostility to democracy, climate change denial, social division, and recklessness.

Of course, companies must act pragmatically and always keep their own well-being and growth in mind. But not at any price, I think. Beyond a certain size and economic power, they also have a social responsibility: They are systemically relevant and influential – including in terms of protecting democracy, freedom, equality, and solidarity.

Values that don't seem to hold much value in Donald Trump. Therefore, offering such a person the big sports stage is a no-go for me.

And, given Trump's unreliability, which completes his personality, he is also blessed with little prospect of lasting success. And even if he were, it would be a success with a bitter aftertaste.

Moreover, Donald Trump is used to a very different kind of charm offensive from the Zuckerbergs and Bezos of this world, sometimes involving investment promises in the US in the hundreds of billions. For companies for whom "Swiss Made" is an unshakeable hallmark, such a thing isn't an option anyway. Whether a box seat, a few sponsorship commitments in the US, or special edition watches from individual brands would suffice seems questionable to me.

Furthermore, it's no secret that Rolex buyers don't have to watch their pennies so closely. I think a compromise between margin cuts and price increases could have been negotiated—and probably will be if there's no progress in the tariff issue for the time being. Without the box seat for Trump in Flushing Meadows, however, this could have been done with heads held high and with the social decorum typical of Rolex. In my opinion, this opportunity was missed.

Swatch Group and the “positive provocation” of Nick Hayek

The enfant terrible of the Swiss watch industry, Nick Hayek, is taking a completely different approach with his Swatch Group. As usual, he doesn't even try to curry favor with anyone—not even Trump. Instead, he relies on his own unique brand of irony.

His answer is called "What if... tariffs" and is a new model in the Swatch "What if..." collection. On the square dial, the Arabic numerals 3 and 9 have been reversed, referring to the 39 percent US tariff imposed on Switzerland. A large percentage symbol can also be seen on the battery compartment cover. The watch costs 139 euros and is available exclusively in Switzerland at eleven Swatch stores and online.

The website states: "Hopefully it's only a limited edition." And in response to a query from watson magazine, Swatch stated: "As soon as the US changes its tariffs for Switzerland, we will immediately stop selling this watch." According to blick.ch, however, the watch is currently already sold out.

A Swatch spokesperson described the action as a “positive provocation”: the aim was to shake up the Swiss government, as it has so far failed to achieve a reduction in tariffs.

But Hayek doesn't stop there. In an interview with the NZZ, he openly criticizes the Swiss Federal Council's behavior following the announcement of the US tariff plans. "In previous crises, communication was clever, borne of intact self-confidence. Federal Councilors also cultivated this attitude: reserved, but with inner strength. Today, however, I am alarmed. Because now we are communicating to the outside world – not just to the Americans, but worldwide – that we are weak and small, incapable of defending ourselves. The whole world has seen that Switzerland has panicked."

He also commented on the US President's Rolex invitation to the US Open and answered the NZZ question as to whether he would have invited Donald Trump:

"Donald Trump as a person, of course, but not as president, but since Rolex is a major sponsor of the US Open, that's understandable. I would also have invited Federal Councilor Parmelin, who had recently been in the US. Parmelin and Trump together at a tennis tournament: that would have been a golden opportunity to start a conversation without losing face."

Of course, a CHF 139 Swatch won't change US customs policy. Hayek knows this too. He explains his entrepreneurial approach to the US market in an interview with NZZ:

"Depending on the brand, we will increase prices here by between 5 and 15 percent. However, since we also have a strong presence in Canada and Mexico, there will be opportunities there as well, especially with our high-volume brands, with American consumers. We are also represented on hundreds of Caribbean cruise ships, especially with our volume brands, often duty-free. Then, of course, there are products that American consumers simply want, like the 'MoonSwatch Moonshine Gold,' which now costs $450 instead of $400. Of course, American customers weren't happy about this, but they also understood that it wasn't our fault, but rather the result of American policy."

And the numbers prove him right, he says: "Things are booming in the US: As of the end of August, we're up around 15 percent in local currency across all brands. Americans are continuing to buy – even after price increases," Hayek told the NZZ.

Raymond Weil, the Zoll watch “Millesime” and 39 percent discount

Raymond Weil seems to have a similar sense of humor to Nick Hayek. At least the Swiss brand has also launched a 39 percent inch watch. There are 39 examples of the limited "Millesime" version, with a diameter of 39 millimeters and a 39-% reference on the dial.

“Because in Swiss watchmaking, adversity doesn’t stop time – it inspires us to create stories worth bearing,” the explanation goes.

But Raymond Weil isn't stopping there. "And in the spirit of solidarity and modest national pride, this watch, limited to just 39 pieces, is being offered to collectors at a 39 percent discount." The watch is currently sold out, but is expected to be available again in mid-November. Unless Donald Trump changes his mind.