It worked out well for clymer and Mayer

At least back in the day you’d get a watch that was 95% a Rolex (minus the movement and dial)

The US used to have a pretty robust watch industry: Ball, Elgin, Waterloo (Timex), Hamilton, Waltham, Gruen, Bulova, Wittnauer. That all got gutted by the Quartz Crisis or bought out with production sent overseas.

As for now, there are pockets - the Lititz Watch Technicum (watchmaking school financed by Rolex) in Pennsylvania is a good example, and RGM watches nearby. I think you’re spot on about marketing - nobody cares about US made watches outside of vintage collectors and it would be hard to stand up a USA-Made luxury brand to compete with Rolex etc.