Swiss watch exports to the United States plummeted by 55.6% in September 2025,
primarily due to the 39% tariff imposed by the Trump administration. This sharp
drop contrasts with rising exports to other global markets such as the UK,
China, and Hong Kong, highlighting the outsized impact of US trade policy on
the world’s largest Swiss watch market.
Sharp Decline in Swiss Watch Exports to the US
As reported by Bloomberg on October 21, 2025, Swiss watch
exports fell 3.1% year-on-year in September 2025 to 2 billion Swiss francs
($2.5 billion). This decline was driven by the American market where exports
dropped by an eye-watering 55.6% due to the Trump administration’s 39% tariff
on Swiss watch imports, the highest import tariff in the developed world.
The Federation of the Swiss Watch Industry (FH) confirmed
that most other global markets experienced growth in September, but these gains
were overwhelmed by the significant contraction in the US market.
Context of the US Tariff and Its Effects
The Trump administration’s tariff on Swiss watches took
effect earlier in 2025. In anticipation of the higher cost, Swiss manufacturers
and retailers hurried to ship inventory before the tariffs started, pushing
exports to the US market to record highs in July. However, this front-loading
effect was followed by a sharp correction in August and a more severe drop in
September.
Bloomberg noted the September decline marked the second
consecutive month of reduced US exports after the surge in July, signalling a
market adjustment after initial stockpiling.
Global Market Performance and Other Regions
While the US market suffered, the UK saw a 15.2% rise in
Swiss watch exports in September, catapulting the UK to become the world’s
largest single export market for Swiss watches for that month (WatchPro).
Chinese markets also showed resilience with mainland China exports up 18% and
Hong Kong exports rising by 21% during September.
Japan, the second largest market after the US and UK, faced
a 6.5% decline since the start of 2025, while China followed in third place,
closely behind with CHF 1.33 billion worth of exports in the first nine months
of the year.
Product Segment Trends in September
According to Bloomberg’s report on October 21, steel watch
exports led the overall decline, falling 3.8% in value. Both the high-end
timepieces priced over 3,000 francs and lower-priced watches under 500 francs
saw decreases, whereas mid-priced watches experienced a 4.2% growth in exports
in September.
This uneven performance across price segments reflects
consumer preferences shifting in response to tariffs and economic factors. The
Swiss watch industry continues to grapple with balancing premiumisation trends
and volume sales.
Industry and Government Responses
Major Swiss watchmakers including Richemont, the Swatch
Group, Audemars Piguet, Patek Philippe, and Rolex SA have been notably impacted
by the US levy (Bloomberg). The Federation of the Swiss Watch Industry has continued
talks with the Swiss government to negotiate a lower tariff with the United
States, though progress remains uncertain. The US Commerce Secretary Howard
Lutnick had expressed some optimism about reaching a deal, but no concrete
advancement has been reported.
Despite the tariff challenges, America remains the largest
Swiss watch export market in terms of value, worth CHF 3.5 billion for the
first nine months of 2025, almost triple Japan’s CHF 1.4 billion.
Overall Industry Impact and Outlook
The total value of Swiss watch exports for September 2025
stood at CHF 2 billion, down 3.1% from September 2024 (Bloomberg). Year-to-date
exports from January to September fell slightly by 1.2% to CHF 18.9 billion,
indicating a relative stability weighed down mainly by the US market slump.
This slight global contraction comes after an incredibly
volatile year, with exports previously spiking due to strategic stockpiling and
then adjusting sharply after tariff implementation.
Swiss watch exports have now faced a phase of transition
affected by external shocks including tariffs, currency fluctuations, and
geopolitical tensions, compelling the industry to reassess pricing and trade strategies.
September 2025 marked a significant downturn for Swiss watch exports to the US as the impact of the 39% tariff imposed by the Trump administration took full effect. While other global markets such as the UK, China, and Hong Kong showed growth, the US market decline overshadowed these gains, highlighting the complex trade challenges facing the Swiss watch industry in a shifting global landscape.