3 days ago
Swiss Watch Exports Surged in April, as the Threat of Higher U.S. Tariffs Loom
Ahead of President Trump's looming tariffs on Switzerland, watchmakers and retailers alike are clamoring to get their hands on timepieces.
1.3 million Swiss watches left the European country in April, totaling $3 billion (2.5 billion Swiss francs). That's an 18 percent increase from the same time last year, according to the Federation of Swiss Watch Industry's latest data, Bloomberg reported.
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The U.S. was the main driver of the surge, making up 33 percent of the market. Exports stateside skyrocketed 149 percent year-over-year to hit a total of $851.9 million—a figure that's equivalent to around a fifth of 2024's total exports to the United States. In particular, timepieces made from precious metals, steel, and bimetallic materials, saw the biggest increases.
The drastic jump seen in April is the 'result of early shipments prompted by the announcement of U.S. tariffs,' Jean-Philippe Bertschy, an analyst at investment firm Vontobel, told Bloomberg. The hike is likely a direct response to the tariffs and not indicative of an increase demand, he said.
As we mentioned, Trump announced a 10 percent tariff on Swiss imports back in April. Since then, he has discussed adding an additional 31 percent levy if a trade deal isn't struck by July 9; that deadline, however, could be pushed back to a later time, according to Bloomberg.
As for the rest of the world, it didn't see a similar surge. Removing the U.S. from the equation, Swiss exports fell 6.4 percent across the globe in April. The Asian market struggled: China had one of the larger drops, with a 30 percent decrease, while Singapore and Hong Kong saw exports drop 9 percent and 23 percent, respectively. The U.K., Japan, and France, meanwhile, saw only single-digit growth, according to WWD.
The U.S. tariffs could affect more than just Swiss watches. The levies would impact luxury automakers, too, though they will not apply to cars over 25 years old. The American wine industry, meanwhile, could suffer in the face of any sort of trade war—which could lead to a massive boom on the secondary market. With the Swiss watch industry, though, we'll just have to wait and see how things shake out.
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