Breitling's CEO, Georges Kern, Rallies to Mitigate Tariffs, Protecting Prices for Consumers Amid Trade Tensions

In anticipation of brutal U.S. tariffs on Swiss import goods, Swiss-based luxury watch manufacturer, Breitling, shipped enough stock to U.S. retailers in advance, ensuring stable prices for at least three months. This move by the company, who is renowned for its popular Navitimer chronograph model, provides a temporary measure till a favourable trade agreement can be negotiated by Swiss government officials with the U.S. With Switzerland reeling from an unexpected 39% tariff rate that went into effect early August, Breitling CEO Georges Kern surmises his team foresaw the ‘worst-case scenario’ and acted to shield both the company and ultimately the consumers. Despite anticipations of a possible deal that would tentatively put the tariff rate at around the 15% mark, a series of unforeseen diplomatic exchanges tipped the scales otherwise. With the U.S. being a significant market for Swiss watches, accounting for almost a fifth of its exports, the current tariff situation if unabated would be detrimental. Kern, the turnaround specialist helming Breitling since 2017, has so far kept the company on the trajectory of revival and growth with annual sales nearing the CHF 1 billion mark, but hints at challenging times ahead. If the Swiss fail to negotiate a better trade deal with the U.S, the need to discuss price hikes not just in the U.S, but globally may become inevitable.