August 5, 2025
Our founder, Shahzaib Khan, had the privilege to be the guest of the Squawk Box Europe on CNBC to share his thoughts on the latest U.S.-Swiss tariffs and its implications.
Watch the full interview on the official CNBC YouTube channel (Segment from minute 48:48).
Read the full story on CNBC’s website.
Host (0:10):
And let’s get to our next guest, Shahzaib Khan, founder of Salon des Horlogers, joins us now.
Thank you so much for joining us. We’re all bracing for some reaction in Switzerland today, various different companies, the markets taking a view — particularly of Swiss watchmakers that may be impacted.
Just weigh in — what’s your view on the wash-up of the tariffs?
Shahzaib Khan (0:28):
Well, it was insult to injury because, you know, it was announced on the 1st of August, which is our national day. Already, the market has been a little bit shaky on the luxury watch side, but adding 31 percent in April and now 39 — it’s a very, very difficult bill to swallow.
We hope now, with the seven-day grace period that the government has, they’ll find a solution — perhaps negotiating a flat fee like the one the UK or European Union has. But currently, watch manufacturers are on vacances horlogers — the traditional watchmaking holidays — so there won’t be any deliveries going out this week.
In April, we saw a surge of 150% in deliveries to the U.S. in anticipation of the tariffs.
Host (1:38):
And now it’s going to be very difficult for these watch brands to absorb this 39% if it lasts in the mid to long term. If we add in other consequences here — we’ve also got a softer luxury market and the rise of the Swiss franc.
How detrimental are all of those factors together?
Shahzaib Khan (2:07):
Exactly. As you said, the strong Swiss franc is hitting us hard — not just in the U.S. market but also in the Middle East and Asia. Add to that the high commodity prices, with gold at an all-time high.
If you combine everything, we’re looking at close to 50% higher prices than before. Major brands have already increased prices by 5–10% to compensate for the rise in gold and the franc.
Host (2:54):
It’s already a difficult market — and I’m sure behind closed doors, the Swiss economy is pushing the government to lobby for a deal.
Shahzaib Khan (3:02):
For sure.
Host (3:13):
Let’s talk about how this impacts pricing for U.S. buyers. Will they really be willing to pay more?
Shahzaib Khan (3:28):
That’s a good question. There’s not much of an alternative to Swiss watches — especially in the upper segment.
Some brands may absorb a bit of the tariff, but the rest will be passed on to the consumer. For example, just last night, I had a client from Miami confirm a $385,000 watch — and he asked, “How will you get it to Miami?”
I replied, “Good question.”
We’ve seen that at this upper level, clients are willing to travel abroad. Since we have locations in Switzerland and Dubai, many American clients — especially since April — are coming on holiday and picking up their watches here.
America is our single biggest market — 20–25% of Swiss production goes there. But not all brands can absorb this tariff while remaining competitive. It’s going to be very difficult.
Host (5:01):
Could this result in job cuts or reduced demand?
Shahzaib Khan (5:08):
Yes. Since April, we saw a 150% spike in deliveries to the U.S., but since then, there’s been a 20% monthly decline — double digits — as buyers hold off.
Host (5:15):
Let’s talk about the secondary market — arguably just as important as the primary. How does this tariff impact it?
Shahzaib Khan (5:25):
We operate as retailers under Salon des Horlogers and also K2 Luxury, based in Geneva and Dubai. We specialize in sourcing the world’s most collectible luxury watches.
In the secondary market, when clients can’t find pieces in the U.S., they turn to Europe or Asia. Clients are now willing to travel — because no one wants to pay 30–39% on top of an already expensive watch.
But we’re seeing a slowdown. People think twice now.
Host (6:15):
Shahzaib Khan with us, founder of Salon des Horlogers, as we count down to the market open and keep an eye on those Swiss futures.
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