With the surge in sales to the United States, boosted by threats of tariff increases, now over, Swiss watch exports fell again in May. The trend is downward for the six leading destinations.
As expected, Swiss watch exports fell again in May, dropping 9.5% to 2.1 billion Swiss francs.
According to the Federation of the Swiss Watch Industry (FH), they were driven by the sharp drop in sales (-25.3% to 268.2 million Swiss francs) in the United States, its leading destination since 2021. This decline in the US market thus accounted for more than 40% of the total decline worldwide.
Boomerang effect
The FH refers to “a boomerang effect, albeit more moderate than expected.” In March (+13.7%) but especially in April (+149.2%!), sales of Swiss timepieces across the Atlantic had indeed skyrocketed,as professionals anticipated a possible surge in customs duties. Determined to restore a less unfavorable trade balance with Switzerland, Donald Trump had considered imposing reciprocal customs duties of 32% on Swiss products.
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Read also > Swiss watch exports buoyed by the United States in April
Featured image: © Rolex
