BERN : According to the Federation of the Swiss Watch Industry, the total value of watch exports in September stood at 2 billion Swiss francs (approximately 2.5 billion U.S. dollars). The downturn was led by a sharp 55 percent plunge in exports to the United States, the world’s largest market for Swiss timepieces, marking the second straight monthly decline after a surge in July, when manufacturers rushed to ship goods before the tariffs took effect.
The unprecedented tariff, the highest ever imposed by Washington on a developed nation, has dealt a blow to major Swiss watchmakers including Richemont, Swatch Group, and independent luxury brands such as Audemars Piguet, Patek Philippe, and Rolex.
Swatch shares slipped as much as 2.4 percent in early Zurich trading, while Richemont’s stock remained largely unchanged. The Federation’s report noted that excluding U.S. exports, global Swiss watch sales actually grew by 7.8 percent.
By category, steel watches led the decline with a 3.8 percent fall in export value. Shipments of high-end watches priced above 3,000 francs, as well as entry-level models under 500 francs, also weakened. In contrast, mid-range watches recorded a 4.2 percent increase in exports during the month.
Meanwhile, the Swiss government continues negotiations with Washington to ease the tariffs, though progress appears limited. U.S. Commerce Secretary Howard Lutnick hinted last month that a deal with Switzerland was “likely,” but industry observers remain cautious as talks stall.
In September, Swiss watch exports dropped 3.1%, hit hard by U.S. tariffs that caused a 55% plunge in exports to the U.S., the largest market. While global sales grew by 7.8% excluding the U.S., major brands like Swatch and Richemont felt the impact. Talks to reduce tariffs are ongoing but have yet to yield significant results.