Swiss Watch Exports To U.S. Surge Ahead Of 39% Tariff

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📝 usncan Note: Swiss Watch Exports To U.S. Surge Ahead Of 39% Tariff

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Swiss watch brands will take a beating from Trump's latest tariff.

The roller coaster ride of Swiss watch exports to the U.S. continues, with a new tariff threat that could hammer the once flourishing luxury watch market. Exports of Swiss watches to the United States, its largest market, surged by 45% in July in anticipation of a 39% tariff that took hold August 7. The increase is unusual for mid-summer, especially in an uncertain market. A similar surge happened in April, ahead of earlier tariff threats, when exports skyrocketed by 149%. In May, however, exports to all the main markets for Swiss watches experienced a sharp decline. In the U.S., they tanked by -25.3%. China was down -17.4%; Japan by -10.5%; Hong Kong by -12.6%; and the UK by 14%. In June, exports to the U.S. were down -18%.

Swiss watch exports to the U.S. face tough times in light of tariffs.

Watches and Wonders

“Swiss watch exports returned to growth in July, boosted by the uncertainties surrounding US tariffs,” says the Federation of the Swiss Watch Industry (FH), which gathers the statistics. “ Exports increased by 6.9% year-on-year, to almost 2.4 billion Swiss francs. However, excluding the impact of exports to the United States, they would have decreased by 0.9%.” The ups and downs in response to tariff threats are skewing monthly export data, says the FH. “Swiss watch exports to the United States jumped by 45.0% in anticipation of high U.S. tariffs. In reality, this was a move to build up local stocks and provides little insight into the actual state of the market. Japan, meanwhile, fell significantly (-10.1%), followed by China (-6.5%), which returned to negative territory.”

Watchmakers at the Swiss manufacture of Zenith.

Zenith

The U.S. remains the number one market for Swiss watches, followed by Japan, China and Hong Kong. The real test of the state of the U.S. market usually comes in the fall, when exports normally tick up again. The Swiss watch industry tends to shut down for July and August, but comes alive again during a build-up to the holiday shopping season.