Swiss watch exports slump in September, hurt by US tariffs

Swiss watch exports fell in September, hurt by the Trump administration’s 39% tariff on imports from Switzerland to the US, the trade’s largest market.

Watch exports fell 3.1% from a yr earlier to 2 billion Swiss francs ($2.5 billion), the Federation of the Swiss Watch Industry stated in a press release Tuesday. Increases in most markets final month had been eclipsed by a 55% plunge in exports to the US.

That marks the second straight month-to-month drop in watch exports to the US, after shipments surged in July as producers rushed to construct up stock forward of the anticipated tariff.

Richemont and Swatch Group AG, in addition to unbiased watchmakers together with Audemars Piguet, Patek Philippe and Rolex SA, have been affected by the US levy, the best in the developed world.

Leaving apart the US, Swiss watch exports would have grown by 7.8% final month, in accordance with the assertion.

Steel watches led the decline, with a lower in worth of three.8%. Timepieces bought for greater than 3,000 francs fell, alongside these bought for lower than 500 francs. Mid-priced watches noticed a 4.2% improve in exports in September.

Overall, Switzerland’s exports to the US rebounded in September, suggesting demand for its items is to this point withstanding the affect of President Donald Trump’s tariffs.

The Swiss authorities continues to pursue talks with Washington to safe a decrease tariff, although its prospects of success are shrouded in doubt. While Commerce Secretary Howard Lutnick stated final month that the US will “probably get a deal done with Switzerland,” there’s been little trace of progress since.