Swiss Watch Exports Fall 3.1% Amid US Tariff Impact

The Trump administration’s 39% tariff on imports from Switzerland has delivered a severe blow to the Swiss watch industry, with September exports to the United States collapsing by 55% year-over-year. This dramatic decline represents one of the sharpest monthly drops in recent memory for an industry that has long considered the US its most important market. The Federation of the Swiss Watch Industry confirmed the devastating impact in its Tuesday statement, revealing that what would have been a positive month for exports was instead dragged into negative territory by the American market’s sudden contraction.

The timing of this downturn is particularly significant given the luxury watch industry’s traditional resilience during economic uncertainty. Swiss timepieces, particularly high-end brands like Rolex, have historically maintained strong demand even during market downturns. However, the 39% tariff represents an immediate price increase that appears to have overwhelmed consumer willingness to purchase, creating a sudden and dramatic market adjustment that even prestigious brands could not avoid.

Despite the catastrophic performance in the United States, the broader Swiss watch export picture reveals a more complex story. Total exports fell 3.1% from a year earlier to 2 billion Swiss francs ($2.5 billion), a decline that would have been substantially worse without offsetting growth in other global markets. The Federation of the Swiss Watch Industry noted that increases in most markets last month were completely eclipsed by the American collapse, highlighting both the concentration risk in the industry’s market distribution and the disproportionate impact of US trade policy.

The 2 billion Swiss franc export total represents a significant setback for an industry that had been showing resilience in the face of global economic headwinds. The fact that multiple other markets demonstrated growth suggests underlying demand for Swiss watches remains healthy outside the United States. However, the sheer scale of the US market—representing the industry’s single largest destination—means that positive performance elsewhere simply couldn’t compensate for the American downturn.

The September export data reveals fundamental vulnerabilities in the Swiss watch industry’s market strategy. With the United States accounting for such a substantial portion of global sales, the sector has become exceptionally exposed to American trade policy decisions. The 55% plunge in US exports demonstrates how quickly political decisions can translate into direct financial impact, raising questions about diversification strategies and risk management within the industry.

For companies like Rolex and other premium Swiss watchmakers, the tariff environment creates immediate pricing challenges. The 39% import duty effectively prices many timepieces out of reach for all but the most dedicated collectors, potentially forcing manufacturers to reconsider their distribution strategies, pricing models, and market priorities. The Federation of the Swiss Watch Industry now faces the complex task of navigating these new trade barriers while maintaining the prestige and pricing power that has defined Swiss watchmaking for generations.

Looking forward, the September export figures serve as a stark reminder of the luxury goods sector’s sensitivity to trade policy changes. As the Swiss watch industry assesses its options—from potential supply chain adjustments to renewed diplomatic efforts—the 3.1% overall decline and 55% US collapse will likely prompt significant strategic reevaluation across the sector. The coming months will reveal whether this represents a temporary disruption or the beginning of a more fundamental shift in global watch market dynamics.