Swiss watch exports surged in April as manufacturers and U.S. retailers rushed shipments to avoid a possible hike in import tariffs. This spike came after former U.S. President Donald Trump proposed raising levies on Swiss goods to 31%, though the rate now sits at 10% until at least July 9.
The rush led to a record month for Swiss watch exports to the U.S., which accounted for one-third of total shipments in April. As a result, total Swiss watch exports are now up 4% for the year compared to 2024. However, the Swiss watch industry remains cautious, viewing the surge as temporary and driven by trade fears rather than real demand growth.
The Federation of the Swiss Watch Industry (FHS) described the jump in exports as “exceptional” and warned that global wholesale orders remain under pressure. Overall exports rose 18% year-on-year in April to CHF 2.5 billion, but the FHS said this reflected early shipments rather than a sustained increase in demand.
While U.S. demand jumped by 149% last month—marking the highest monthly surge on record—other major markets painted a different picture. Exports to China and Hong Kong fell sharply by 31% and 23%, respectively, due to weak consumer confidence amid an ongoing real estate crisis and broader economic slowdown.
Japan saw a modest 1.9% increase, and exports to the U.K. rose 1.6%, making it the third-largest market for Swiss watches. The U.S. overtook China as the top destination for Swiss timepieces in 2021.
To navigate the shifting trade landscape, Switzerland is now seeking a bilateral trade agreement with the U.S., alongside other partners like the European Union. U.S. Treasury Secretary Scott Bessent said on May 12 that Switzerland had “moved to the front of the queue” for trade negotiations, though no deal has been finalized.
Uncertainty over tariffs has caused hesitation among American consumers, especially for high-end items. Top watchmakers, including Audemars Piguet, Omega, Rolex, and Tudor, have responded by raising prices in the U.S. These price hikes also reflect the strong Swiss franc and rising gold prices.
Leading luxury groups such as Richemont, LVMH, and Hermès reported declining watch sales in the first quarter of 2025. Analysts attribute the slump to weakening consumer sentiment, “luxury fatigue,” and growing doubts about the emotional value of high-end purchases.
Jean-Philippe Bertschy, Managing Director at Vontobel, said in a client note that brands with strong global appeal and diversified markets are better positioned to weather the uncertainty.
While the April numbers are impressive, industry experts caution that they may not signal a lasting recovery in global demand.
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