US tariffs hit Swiss watch industry

The Swiss watch industry faced a serious decline in exports in September. According to the latest statement by the Federation of the Swiss Watch Industry, the country's watch exports fell by 3.1 percent in September 2024 compared to the same period last year, dropping to 2 billion Swiss francs (approximately 2.5 billion dollars).

The US government's imposition of a 39 percent additional customs duty on watches imported from Switzerland caused a sharp drop in exports to the US, one of the sector's largest markets. According to the data, there was a 55 percent decrease in watch shipments to the US last month. This rate showed that figures in this market have declined for the second consecutive time, following the increase recorded in watch shipments to the US in July.

Leading Swiss manufacturers, primarily Richemont and Swatch Group AG, as well as Audemars Piguet, Patek Philippe, and Rolex SA, have been negatively affected by the newly implemented customs duties.

In the statement made by the Federation, it was noted that Swiss watch exports outside the US market rose by 7.8 percent in September. Despite this increase, the sharp drop in exports to the US pulled down the overall total exports.

The resilience of the Swiss watch sector against global developments is being tested this year due to the tariffs imposed by the US. Industry representatives state that they will continue to closely monitor developments, particularly in the US market, in the coming period.

News Source: 12punto