Swiss watch exports fell significantly in May, reversing a sharp rise seen in April. According to the Federation of the Swiss Watch Industry, exports dropped 9.5% year-over-year to CHF 2.1 billion. This decline follows an April surge, when retailers rushed to import high-end watches before expected U.S. tariff hikes.
Shipments to major markets — including Japan, mainland China, Hong Kong, the United Kingdom, and France — all decreased. Despite the May drop, exports for the year so far are up 1.1% compared to the same period in 2024. However, the Federation warned that these figures do not reflect actual retail sales, which it says have shown “a less positive trend.”
Jean-Philippe Bertschy, head of Swiss equity research at Vontobel, called the Federation’s caution “unusual and noteworthy.” In a note to clients, he said May’s data reveals the first clear sign of a slowdown in 2025. While April’s U.S. import spike was expected due to the tariff threat, the decline across other key markets raises more serious concerns.
Much of the modest year-to-date growth has been driven by the U.S., which now represents 21% of all Swiss watch exports — a record share. China’s weak demand, still affected by its ongoing real estate crisis, has weighed heavily on global performance.
May’s export data also showed declines across nearly all price categories. This includes watches priced above CHF 3,000, which have recently been a key growth segment as brands shift toward fewer, more expensive models.
The downturn follows heightened trade tensions. In April, during a “Liberation Day” speech, U.S. President Donald Trump initially threatened a 31% tariff on Swiss goods, including watches, later reducing the figure to 10% amid ongoing bilateral trade talks. Though U.S. officials say Switzerland is a priority for a new agreement, no deal has been finalized.
Major brands like Rolex, Tudor, Omega, and Audemars Piguet have already raised their U.S. prices in response. Industry leaders say the uncertain policy environment is making it harder for consumers to commit to purchases. Echoing these concerns, Federal Reserve Chair Jerome Powell used the word “uncertain” over a dozen times in a recent press conference, as the Fed cut its U.S. growth outlook from 1.7% to 1.4% and left interest rates unchanged.
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