Business News: Swiss Watch Exports To U.S. Surge Almost 150% In April After Tariff Shock

Swiss watch exports surged in April as watchmakers and U.S. retailers rushed to ship and receive stock following the unexpected threat of major levies on Swiss goods imported to the United States. Exports to the U.S. jumped by 149% last month, the most ever, after U.S. President Donald Trump’s ‘Liberation Day’ vow to impose a 31% levy on imports from Switzerland. The Federation of the Swiss Watch Industry, which compiles the data for the monthly export report, warned that the surge in shipments was an “exceptional” event and that global orders for wholesale timepieces by retailers remain under pressure. 

Overall exports jumped 18% in April from the year before to reach CHF 2.5 billion, but “this was mainly the result of early shipments, motivated by the increase in US customs duties,” the FHS says in a statement. Excluding the record shipments to the U.S., total exports would have declined by 6.4% as exports to China and Hong Kong continued to recede. “The sharp rise in exports is therefore more a reflection of a one-off response to an uncertain commercial situation than a genuine sign of a structural strengthening of demand,” the FHS says. 

Swiss watch exports are now up 4% year-to-date compared to 2024, as record U.S. monthly Swiss watch exports accounted for one-third of overall shipments in April. However, the one-off surge raises questions about what exports will look like for the rest of the year, as the industry awaits further clarity on U.S. trade policy. China and Hong Kong exports remained weak, falling 31% and 23% respectively in April. Japan’s exports rose a solid 1.9%, while the U.K.’s exports jumped 1.6% to become the third-largest export market for Swiss watches by market share.

The U.S. overtook China as the top destination for Swiss watch exports in 2021. A real estate crisis and economic downturn in China have led to a decline in wholesale orders for watches from retailers, as consumers remain cautious. Richemont, whose brands include Cartier, Panerai, and IWC, bought back some watches from Chinese retailers recently, the company disclosed in its annual financial results.

Trump lowered the so-called “reciprocal” tariff level of 31% imposed against Switzerland to the blanket 10% rate that is now in place for most trading partners, excluding China, until July 9. Switzerland and other U.S. trading partners, including the European Union, which encompasses Germany and is home to brands such as Nomos and A. Lange & Söhne, are now seeking to strike bilateral trade deals with the U.S. ahead of the three-month deadline.

Switzerland has “moved to the front of the queue,” among favored nations trying to negotiate a trade deal, U.S. Treasury Secretary Scott Bessent told reporters in Geneva on May 12. No agreement has been reached so far.

The tariffs have created uncertainty among some U.S. consumers and hesitancy to make big-ticket purchases, including watches, according to industry executives, including the CEOs of Audemars Piguet and Omega. Those brands and other major Swiss producers, including Rolex, Tudor, and Blancpain, have increased prices in the U.S. in response to the tariffs, the surging value of the Swiss franc against the greenback, and record gold prices.

Each of the major listed companies with significant watch brands, including Richemont, LVMH, and Hermès, reported a decline in watch sales in the first quarter of 2025.

“The rise of ‘luxury fatigue’, a declining ‘feel-good factor’ from luxury purchases, and worsening consumer sentiment all contribute to a less optimistic outlook. This was even before the upheaval caused by tariffs,” Jean-Philippe Bertschy, Managing Director and the head of Swiss equity research at Vontobel in Zurich, says in a report to clients following the export data. “As a result, we would continue to favor brands with strong appeal and iconic collections that are geographically diversified and have a solid, high-end customer base,” Bertschy adds.

The sector-specific April Swiss watch export data and the record U.S. surge contrast with overall Swiss trade data, which showed that total exports to the U.S. plunged by 36% in April from March as other industries pulled back. Imports of U.S. goods to Switzerland fell 15%, according to Switzerland’s customs office in Bern.

​Hodinkee 

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