ZURICH, Switzerland: Swatch is preparing to make U.S. consumers pay more for its watches, as the Swiss group responds to steep tariffs imposed by Washington. The company's chief executive, Nick Hayek, said over the weekend that prices in the United States will climb between 5 percent and 15 percent after President Donald Trump's decision last month to levy a 39 percent duty on Swiss imports.

Hayek, speaking to the Swiss newspaper NZZ am Sonntag, said the company would adjust for the tariffs through higher prices while also using transfer prices and margins to cushion the blow.

"Depending on the brand, we will increase prices in the range of 5 to 15 percent. But since we also have a strong presence in Canada and Mexico, there will be opportunities there too for American consumers," he said.

Swatch watches are also widely available on Caribbean cruise ships, often sold duty-free, giving U.S. buyers alternative access points.

Despite the new tariff pressure, Hayek insisted the group's business in the United States remains solid. "As per the end of August, we were up around 15 percent in local currency across all brands. Americans are continuing to buy – even after price increases," he said.

The company has even turned the tariffs into a marketing opportunity. Last week, Swatch launched a special edition model mocking the U.S. trade policy, named "WHAT IF…TARIFFS?" The watch features the numbers 3 and 9 reversed on its face, a nod to the 39 percent levy that Washington imposed on Swiss goods.

Hayek also pointed to the MoonSwatch Moonshine Gold watch as an example of how tariffs have already pushed up prices. The popular model, which used to sell for US$400, now costs $450 in the U.S.

"Naturally, American customers weren't happy about that, but they also understood that it wasn't our fault, but rather the result of U.S. policy," Hayek said.