The Swiss Watch Industry Faces a Shocking Blow: U.S. Tariffs Trigger a 56% Export Plunge in September 2025
The Swiss watch industry, renowned for its precision and luxury, has been dealt a severe blow. With the implementation of a staggering 39% tariff on Swiss goods entering the United States, exports to this once-thriving market have plummeted by a jaw-dropping 56% in September 2025 compared to the same period in 2024. But here's where it gets even more intriguing: this drastic drop, while alarming, might not tell the whole story.
A Perfect Storm of Challenges
This decline wasn't entirely unexpected. The industry was already grappling with a global slowdown, largely due to a slump in sales in China and Hong Kong, historically two of the largest markets for Swiss timepieces. The real estate crisis in China, dubbed the 'Middle Kingdom's' economic woes, has significantly dampened demand for luxury goods, including watches. Data from the Federation of the Swiss Watch Industry (FHS) paints a clear picture: exports to China and Hong Kong plummeted by 25.8% and 18.7% respectively in 2024 compared to the previous year, a stark contrast to the record-breaking performance of 2023.
Trump's Tariffs: A Game-Changer
Enter the Trump Administration's controversial trade policies. In April 2025, President Trump announced reciprocal import taxes on over 100 countries, including Switzerland. The proposed 31% tariff on Swiss goods, unveiled during a Liberation Day speech, sent shockwaves through the watch industry, especially as it coincided with the opening of the prestigious Watches and Wonders Geneva fair. Despite initial hopes for negotiations, the situation escalated. By August 2025, the White House imposed an even higher 39% tariff on Swiss imports, effective immediately. This move sparked fear among Swiss officials and executives, who anticipated significant economic repercussions.
The Immediate Impact: A September Slump
The FHS September report revealed the stark reality: Swiss watch exports to the U.S. nosedived by 55.6%, from CHF 355 million to a mere CHF 158 million. The U.S., once the top market for Swiss watches, now languishes in third place, behind the United Kingdom and Japan.
But Wait, There's More to the Story...
While the September figures are undeniably grim, a closer look reveals a more nuanced picture. The 9-month period from January to September 2025 shows a 10.4% growth in the U.S. market compared to 2024, and a remarkable 15.9% increase compared to the record-breaking year of 2023. This suggests that brands anticipated the tariffs and strategically increased exports before their implementation, leading to a temporary surge followed by the September decline.
Global Landscape: A Mixed Bag
The U.S. isn't the only player in the game. The UK has emerged as the new leader in Swiss watch imports, with a 15.2% growth in September 2025. Greater China, after a prolonged slump, showed surprising resilience with Hong Kong and China reporting significant growth in September. Singapore and other Asian markets also displayed renewed dynamism. Interestingly, Canada and Mexico, possibly benefiting from the U.S. tariffs, saw impressive growth in Swiss watch imports.
The Bigger Picture: A Cautiously Optimistic Outlook
Globally, Swiss watch exports in September 2025 contracted by 3.1% year-on-year. However, the FHS highlights that without the U.S. tariff impact, exports would have grown by a healthy 7.8%. This raises a crucial question: Is the U.S. tariff a temporary setback or a long-term threat to the Swiss watch industry's dominance?
What's Next?
The industry's ability to adapt to these challenges will be crucial. Will brands adjust their pricing strategies, explore new markets, or negotiate tariff reductions? Only time will tell. One thing is certain: the Swiss watch industry, known for its resilience and innovation, is facing a pivotal moment in its history.
What are your thoughts? Do you think the U.S. tariffs will have a lasting impact on the Swiss watch industry? Share your opinions in the comments below!
