Stark Drop in Swiss Watch Exports to the US Stirs Industry: Reflecting on the Aftermath of 39% Tariffs

As many anticipated, the stiff tariffs imposed by the U.S. government on Swiss goods, which came into effect from August 2025, have dealt a significant blow to Swiss watch exports. Reports indicate a shocking 56% plunge in exports to the U.S. compared to the same period in 2024. The stringent 39% export taxes, which were hardly expected to fly by, have left an undeniably deep imprint.

The figures from September 2025 reflect a challenging phase for the watch industry, which is already grappling with a global slowdown due to declining sales in Hong Kong and China. Inextricably linked to the real estate crisis in the Middle Kingdom, watch markets in these regions exhibited a remarkable downturn of -25.8% and -18.7% respectively in 2024. These developments mark a sharp deviation from 2023, which was a banner year for Swiss watch exports, especially to Greater China.

The crisis was further deepened by the swift imposition of tariffs, which followed closely on the heels of the prestigious Watches and Wonder Geneva event. Despite the hopeful anticipation of negotiations that could avert the bleak consequences, the landscape quickly shifted.

However, in the face of adversities, the watch industry is also displaying resilience, with certain struggling markets showing signs of recovery. Herein lies the essence of the broader scenario behind these figures, one that urges stakeholders to keep an eye on the bigger picture amidst the unfolding saga of international trade and diplomacy.