US Open: Why the watch company Rolex is inviting the US President to tennis

The watch movements of the Swiss brand Rolex are actually known for their precision. However, the final of the US Open tennis tournament last Sunday, of which Rolex is one of the sponsors, was delayed by half an hour because of the watch manufacturer. Rolex had invited US President Donald Trump to the match, necessitating heightened security measures. Many media outlets reported frustrated fans, some of whom missed the beginning of the match. Videos show cheers and boos during Trump's appearance, including during the playing of the national anthem.

Trump watched the final from a VIP box. The Swiss tabloid Blick reports that during the third set, Trump and his entourage disappeared for lunch for 45 minutes, then posed for photos and handed out signed baseball caps, his trademark. Also present at this typical Trump appearance was Rolex CEO Jean-Frederic Dufour. What the two discussed is not yet known.

But the invitation for Trump to the Rolex lounge was almost certainly not just about the luxury watch manufacturer currying favor with the US president. The industry is in crisis. And the 39 percent tariffs on exports to the USA are now a further problem for the Swiss watch industry. According to the industry association, 18 percent of Swiss watch exports went to the USA last year. Recently, this number has actually increased significantly, but this is likely due to the fact that many manufacturers sent as many watches as possible to their warehouses in the USA over the summer to get ahead of the tariffs. This should cushion the worst of the impact for at least a few months. At an industry trade fair in Geneva last week, many Swiss watch manufacturers expressed marked confidence. They said things won't be so bad.

That may even be partly true. Especially very expensive brands like Rolex will most likely come to terms with the tariffs. After all, customers who have decided to buy a Rolex or a similar watch for a four- or five-figure sum are, in case of doubt, willing to pay a few thousand euros, francs, or dollars more. Especially since the tariffs are unlikely to be passed on to customers in full. However, for smaller manufacturers and other sectors of Swiss industry, especially in the precision mechanics and mechanical engineering sectors, where prices are often calculated tightly, the high tariff on exports to the USA is a major problem.

Trump's invitation to the US Open should therefore be understood more as a charm offensive on behalf of the Swiss economy, after the Swiss government's diplomatic efforts have so far failed to improve the customs situation, but have even worsened it. Trump announced the high tariff rate for Switzerland after a telephone call with the incumbent Swiss President, Karin Keller-Sutter, at the end of July. Could it be possible to soften the US President's stance with favors like the invitation to the US Open? Not impossible, as Trump is known to be not averse to gifts and flattery. So far, however, there are no indications that he will deviate from his tough stance toward Switzerland.

The political negotiations, which are continuing in parallel, have also continued to produce no results. Trump did sign one of his infamous executive orders on Friday, exempting gold and other commodities from tariffs. However, he had announced this weeks ago, and tariffs on gold were never Switzerland's problem anyway – the high exports of gold melted in Switzerland actually led to the trade deficit between Switzerland and the US, which Trump considers a problem.

Swiss Economics Minister Guy Parmelin wrote on X over the weekend that "constructive meetings" had taken place in Washington. Switzerland is said to be working on a new offer for Trump. The Swiss media has been talking for some time about, among other things, more arms purchases, such as Patriot missiles. However, Switzerland is already spending billions on weapons from the US. It would be surprising if Trump were to change his mind simply by buying a few missiles.

More revealing about the direction things might take was an interview with US Secretary of Commerce Howard Lutnick last Friday. He told Bloomberg that small Switzerland is so rich because it sells expensive pharmaceutical products to the US. Medicines are the most important item in Swiss exports to the US, but by no means the only one. Compared to the European Union, with only 9 million inhabitants, Switzerland has little to offer the US in terms of trade, Lutnick continued. He called for a new approach to the issue, such as the $550 billion investment promised by Japan, over the use of which the American government will have a say. However, it is hard to imagine Switzerland agreeing to such an agreement. So what next? Lutnick also said in the interview: "I'm not optimistic."

So, back to sports. Following the Rolex invitation to the US Open, the right-wing populist Swiss People's Party (SVP) is now demanding that FIFA president and Trump cronies Gianni Infantino finally intervene on Switzerland's behalf in the Oval Office. The Swiss don't seem to be quite so desperate, though. Even if Infantino were successful in such an unusual diplomatic assignment, it would definitely be an own goal for Swiss politics.