Core Viewpoint - The introduction of a 39% tariff on Swiss goods by the US administration has significantly impacted Swiss watch exports, leading to a decline in sales [1][2]. Impact of Tariffs - The 39% tariff is described as "horrible" and has resulted in a drastic drop in Swiss watch exports [2][1]. - The watch industry has responded by increasing prices globally by 4% to mitigate the impact of tariffs, although this is insufficient to cover the full tariff cost [3][4]. Market Performance - Despite the tariff challenges, the US market for luxury watches is reportedly booming, with strong double-digit growth in sellout figures [4]. - Consumer sentiment in the US remains positive, contrasting with the negative outlook in Europe, particularly in Germany and France, where political instability is a concern [4][5]. Regional Insights - China, while not a major market (4-5% of revenues), has shown signs of stabilization and growth in recent months [7][8]. - Other regions such as South America, the Middle East, and India are performing well, contributing to a generally positive outlook for the luxury watch industry [9][10]. Industry Dynamics - The luxury watch market is expected to concentrate around a few dominant brands, which will control a significant market share, while niche brands may still survive [13][14]. - The industry is experiencing a globalization of taste, with a few brands emerging as leaders, similar to trends seen in other sectors like fashion and entertainment [16].