Swiss Watch Exports to the U.S. Plummeted 56% in September

Fewer and fewer Swiss timepieces are making it to the U.S. 

Swiss watch exports to the country halved in September, dropping 55.6 percent to 157.7 million Swiss francs (approximately $198.5 million) last month, according to a new report published by the Federation of the Swiss Watch Industry on Tuesday. That marks the second consecutive monthly drop, with exports to the U.S. on a downward trajectory since President Donald Trump announced a hefty 39 percent U.S. tariff on Swiss watches in August. 

Crucially, the U.S. is no longer the industry’s biggest market. The U.K. has climbed to the top, with exports growing 15.2 percent to 173.3 million francs (about $218 million). Japan experienced a drop but still clinched second spot, pushing the U.S. to third. The industry body says most markets enjoyed an uptick last month—exports to China and Hong Kong, for example, jumped 17.8 percent and 20.6 percent, respectively—but the stateside drop effectively prevented industry-wide growth. “Without this expected but nonetheless extraordinary development, Swiss watch exports would have grown by 7.8 percent,” the report reads. 

Watch exports fell 3.1 percent from the previous year to 2 billion francs ($2.5 billion), according to the report. In total, 94,000 fewer timepieces (7.6 percent) were exported in September. Steel watches led the decline, with a decrease in value of 3.8 percent and a drop in volume of 6.1 percent. Watches made from precious metals actually increased in value by a tiny amount (1.5 percent)—not exactly surprising given the current record prices of gold and silver—but that had little impact on the overall situation, as about the same number of units were shipped. In terms of price, all segments experienced fewer exports in September, except for watches valued at between 500 and 3,000 francs (approx. $629 and $3,800). Luxury pieces worth $3,800 or more declined 7.6 percent. 

The U.S. levy on Swiss goods, the highest in the developed world, has shaken up the entire watch industry. Watchmakers, retailers, and dealers are grappling to find the best and most cost-effective ways to get pieces in the hands of stateside collectors. The Swiss government has also been desperately trying to secure a lower tariff, but has so far been unsuccessful. Some experts have already speculated that if the 39 percent levy sticks, brands might instate a temporary hiatus in the American market. There could soon be even fewer Swiss watches heading stateside, then.