Trump's tariff hammer Problems for the Swiss watch industry in the most important export market
The Swiss watch industry is facing difficulties in the face of US tariffs. So far, however, the industry has proved resilient, according to a study by the consulting firm Deloitte.
08.10.2025, 06:33
08.10.2025, 06:52
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- According to a new study, the Swiss watch industry is facing more difficult times, and not just because of Trump's tariff hammer.
- The strong franc, falling demand in other regions and increasing price sensitivity among customers are also contributing factors.
Import duties of 39% on Swiss watches have been in force in the USA since August 2025. This is a blow for the watch industry's most important export market. Added to this are the strong franc, falling demand in other regions and increasing price sensitivity among customers, as Deloitte writes in the study published on Wednesday.
Last year, watches worth CHF 4.4 billion were exported to the USA. The largest export market for Swiss watches accounted for almost 17 percent of global Swiss watch exports.
Higher prices
However, the industry has proved resilient so far: according to Deloitte, the value of exported watches fell by a relatively slight 1.0% between January and August 2025 compared to the previous year.
According to the management consultant, this is a sign that large purchases and stockpiling took place before the US tariffs were introduced. However, the tariffs are likely to lead to substantial price increases for leading Swiss brands in the USA, the study predicts. This could severely dampen demand there in the future.
New markets
However, there are also rays of hope. For example, the market for second-hand watches is developing dynamically. Around 40 percent of Generation Z respondents stated that they were planning to buy a second-hand watch.
The industry also sees growth potential in India and Mexico. While India continues to boom with a 7% increase in exports, Mexico is establishing itself as a new center in Latin America with exports of 337 million Swiss francs last year.
The study is based on interviews with 111 industry leaders and 6,500 people in 13 countries, according to the report.
