Swiss watch exports slump in May as US tariffs shake market

Asia exports slump as shipments to China, Japan and Hong Kong plunge by double digits in latest data

Published Thu, Jun 19, 2025 · 04:06 PM

Swiss watch exports dropped by almost 10 per cent in May led by a slump in shipments to the US, reversing the previous month’s surge when manufacturers were trying to get ahead of a looming trade war.

Total shipments fell 9.5 per cent to 2.1 billion Swiss francs (S$3.3 billion), the Federation of the Swiss Watch Industry said in a statement on Thursday (Jun 19). Exports to the US, the single-biggest market, were down just over 25 per cent.

The latest data underscore the impact President Donald Trump’s trade policies are having on the watch sector. The US imposed a 10 per cent levy on imports from Switzerland in early April, and has threatened as much as 31 per cent if a new trade deal is not reached. The watch industry would be hit hard by any increase.

Shares of Swatch Group and Compagnie Financiere Richemont fell as much as 2.3 per cent and 2.5 per cent respectively in early trading in Zurich.

Asia continued to suffer, with shipments to China, Japan and Hong Kong all registering double-digit declines in the latest data.

“The rise of ‘luxury fatigue,’ a declining ‘feel-good factor’ from luxury purchases, and worsening consumer sentiment all contribute to a less optimistic outlook,” Vontobel analyst Jean-Philippe Bertschy said in a note.

The Swiss watch industry’s weakness matches a wider trend for the export-dependant country, as overall monthly foreign sales declined 42 per cent, narrowing Switzerland’s trade surplus the most in almost five years. BLOOMBERG

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