By
Bloomberg
Published
June 19, 2025
Swiss watch exports dropped by almost 10% in May, driven by a sharp decline in shipments to the US. The fall reverses the previous month’s surge, when manufacturers rushed to export ahead of anticipated tariffs.
Total shipments fell 9.5% to 2.1 billion Swiss francs ($2.6 billion), the Federation of the Swiss Watch Industry said in a statement Thursday. Exports to the US—the largest market for Swiss watches—fell by just over 25%.
The latest figures underscore the pressure of President Donald Trump’s trade policies on the luxury watch sector. In early April, the US imposed a 10% levy on imports from Switzerland and has threatened to raise it to as much as 31% if a new trade agreement isn’t secured. Any additional increase would significantly affect the industry.
Shares of Swatch Group AG and Compagnie Financière Richemont SA dropped as much as 2.3% and 2.5%, respectively, during early trading in Zurich.
Shipments to Asia also declined, with China, Japan and Hong Kong all posting double-digit drops, further compounding the industry’s global challenges.
“The rise of ‘luxury fatigue,’ a declining ‘feel-good factor’ from luxury purchases, and worsening consumer sentiment all contribute to a less optimistic outlook,” Vontobel analyst Jean-Philippe Bertschy said in a note.
The decline in the Swiss watch sector mirrors a broader slowdown in the export-driven Swiss economy. Overall, foreign sales fell 42% in May, narrowing the country’s trade surplus by the largest margin in nearly five years.
