Swiss Watch Exports Slump in September on US Tariffs

Core Insights - Swiss watch exports experienced a decline of 3.1% year-over-year in September, totaling 2 billion Swiss francs ($2.5 billion), primarily due to a 39% tariff imposed by the Trump administration on imports from Switzerland to the US, which is the largest market for Swiss watches [1][2][3] - The decline in exports to the US was significant, with a 56% drop, marking the second consecutive monthly decrease following a surge in shipments in July as producers prepared for the anticipated tariffs [2][3] - Exports to the US have negatively impacted major companies in the industry, including Richemont and Swatch Group AG, as well as independent watchmakers like Audemars Piguet, Patek Philippe, and Rolex SA, leading to a drop in share prices for Swatch and Richemont [3][4] Market Performance - Excluding the US market, Swiss watch exports would have increased by 7.8% in September, indicating strong demand in other regions [5] - The decline was primarily driven by steel watches, which saw a 3.8% decrease in value, while mid-priced watches experienced a 4.2% increase in exports [5] Future Outlook - The Swiss government is actively pursuing negotiations with the US to lower the tariff, although the likelihood of success remains uncertain [7] - Despite the challenges, overall Swiss exports to the US showed signs of recovery in September, suggesting that demand for Swiss goods is resilient against the tariffs [6]