U.S. buyers of Swiss products, from luxury watches and skincare to artisan chocolates, could soon face sharp price rises if negotiators are unable to strike a deal to avert 39% tariffs due to come into effect on Thursday.

The announcement last week that Switzerland faces one of the highest U.S. tariff rates in the world stunned many politicians, analysts and businesses, who had thought the country was close to negotiating a deal similar to those of the European Union and U.K., which got baseline rates of 15% and 10% respectively.

The U.S. has a hefty trade deficit with Switzerland, totaling $38.3 billion in 2024. The Swiss government points out that the gap is in part because of the latter’s status as the world’s biggest center of gold refining, with huge quantities of the precious metal passing through the country for processing before it is sent around the world. Both gold and silver were exempted from the White House’s “reciprocal tariff” policy launched in April.

The U.S. is also a major importer of Swiss pharmaceuticals, an industry that has been mired in confusion over the tariff rates it will face, and medical devices. Pharma products are currently exempt from the 39% levies, though sector-specific tariffs may yet come under the U.S.’s separate Section 232 investigation.

But consumers will mostly be familiar with the Alpine country’s high-end products, from Rolex watches to premium skincare and beauty products. Sales could be rocked if the 39% tariffs remain in place for an extended period - something Swiss negotiators are currently scrambling to avoid, as economists warn of a massive hit to growth, jobs and stocks.