Swiss watch exports decline amid US tariff uncertainty
Reuters spoke with over a dozen industry workers in the watch-selling hub, including shop managers and salespeople, who said tariff uncertainty has weighed on a sector that exported watches worth 26 billion Swiss francs ($32.79 billion) in 2024. The business is already coping with weak Chinese demand, while in Switzerland, a franc supercharged by U.S. trade uncertainty has made the watches more expensive for foreign tourists.
Switzerland, which relies heavily on trade, was stunned when Trump announced in April that he would impose a 31% tariff on the country, significantly higher than the 20% rate proposed for the European Union.
"That obviously really put the brakes on," said Ken May, boutique manager at a Hublot store.
Trump subsequently suspended the tariffs for 90 days, maintaining a 10% duty, and later extended his deadline until August 1. That sparked a rush by watchmakers to move their products to the U.S. ahead of the tariffs, causing Swiss exports to yo-yo up and down.
The industry is on track to log its lowest export volumes for wristwatches since the pandemic in 2020, according to data from the Federation of the Swiss Watch Industry (FH).
"We have to open other markets," Yves Bugmann, FH president, said. "We have to look for other opportunities."
Unit exports were down nearly 5% in the January–May period year-over-year, though marginally up in value terms.
This summer, there are noticeably fewer tourists packing Lucerne's main watch-selling street. Those who come are more careful with their money, salespeople said.
Thousands of watches glint at shoppers in Lucerne's Grendelstrasse, which boasts stores from Rolex to Patek Philippe. Watches in these shops typically cost from several hundred francs to more than 500,000 francs.
At Patek Philippe, which sells watches online for nearly 3.8 million francs, customers take an elevator to an upstairs boutique. Here, a watchmaker wearing a white lab coat delivers customized timepieces on a tray to clients.
"Everything is just a bit slower than last year," said Michael Haas, boutique manager of a Breitling store in Lucerne. "We're in a luxury business, and as a rule, that's where people save first when the going gets tougher."
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
LeMonde
30 minutes ago
- LeMonde
Trump threatens to set 200% tariff on pharmaceuticals, 50% on copper
President Donald Trump said Tuesday, July 8, that he would not extend an August 1 deadline for higher US tariffs to take effect on dozens of economies, while announcing plans for a 50% duty on copper imports. The copper levy would come after a probe into imports of the metal, broadening a slate of sector-specific tariffs Trump has imposed since returning to the White House. "Today we're doing copper," he told a cabinet meeting Tuesday. "I believe the tariff on copper, we're going to make it 50%." Commerce Secretary Howard Lutnick told CNBC shortly afterward that the rate will likely be implemented at the end of July or on August 1. Trump also said Washington would soon make an announcement on pharmaceuticals, but officials would allow manufacturers time to relocate their operations into the country. "We're going to give people about a year, a year and a half to come in, and after that, they're going to be tariffed," he said. "They're going to be tariffed at a very, very high rate, like 200%." Apart from copper and pharmaceuticals, Trump has ordered probes into imports of lumber, semiconductors and critical minerals that could lead to further levies. Lutnick told CNBC that US studies on pharmaceuticals and semiconductors would be completed by the end of the month, with Trump to set policies thereafter. Beyond tariffs impacting sectors, Trump separately slapped a sweeping 10% tariff on goods from almost all trading partners in April. These would have swiftly risen to steeper levels for dozens of economies including the European Union and Japan, but Trump paused their implementation until July 9. The president this week again delayed their reimposition, pushing it to August 1 while insisting there would be no further delay. 'No extensions' "No extensions will be granted," Trump posted on Truth Social. "There will be no change." The clarification came after Trump told reporters Monday night that the August 1 deadline was "firm, but not 100% firm." In a push for further trade deals, Trump also sent letters to more than a dozen partners on Monday, including key US allies Japan and South Korea. Products from both countries would be hit with 25% duties, Trump wrote in near-identical documents to leaders in Tokyo and Seoul. Indonesia, Bangladesh, Thailand, South Africa and Malaysia were among other countries facing duties between 25% and 40%. Most countries receiving the letters so far saw US tariffs at similar or unchanged rates from those threatened in April, although some like Laos and Cambodia received notably lower levels. In his messages to foreign leaders, Trump warned of further escalation if there was retaliation against his levies. Lutnick said 15 to 20 more letters could go out in the next two days.
France 24
an hour ago
- France 24
Trump announces 50% tariff on copper
Business 06:04 From the show US President Donald Trump announces a 50% tariff on copper after sending tariff letters to 14 different trading partners. Bulgaria is set to adopt the euro on 1 January 2026. Plus, France's parliament approves a controversial bill on agriculture which brings back a pesticide that was banned in 2020.
France 24
an hour ago
- France 24
Death toll in Texas floods climbs to 108, with more rain expected
As of Tuesday morning, authorities in worst-hit Kerr County had recovered the bodies of 87 victims, Sheriff Larry Leitha told reporters. The deceased include at least 27 girls and counselors who were staying at a youth summer camp on the Guadalupe River over the Fourth of July holiday weekend. "At present, five Camp Mystic campers and one counselor still remain unaccounted for," Leitha added. At least 108 flood-related deaths were reported across central Texas, according to local officials. During a Cabinet meeting, President Donald Trump said he would travel to Texas with First Lady Melania Trump on Friday, and credited his strong ties with the state's Republican governor as having helped the rescue effort. "We brought in a lot of helicopters from all over... They were real pros, and they were responsible for pulling out a lot of people. And we got them there fast, and Texas had some good ones too, but the response has been incredible," Trump said. Trump, who previously said that disaster relief should be handled at the state level, earlier this week signed a major disaster declaration, activating fresh federal funds and freeing up resources. 'Extremely treacherous' Ben Baker with the Texas Game Wardens said search and rescue efforts involving helicopters, drones and dogs were extremely difficult because of the water and mud. "When we're trying to make these recoveries, these large piles can be very obstructive, and to get in deep into these piles, it's very hazardous," Baker said. "It's extremely treacherous, time-consuming. It's dirty work, the water is still there." He added that special attention was being paid to the first responders' mental state, particularly given that the bodies of children were being recovered. In the town of Hunt, the epicenter of the disaster, an AFP team saw recovery workers combing through piles of debris with helicopters flying overhead, as hopes dimmed for finding any survivors. Javier Torres, 24, was digging through mud as he searched for the body of his grandmother, after having located the remains of his grandfather. He also discovered the bodies of two children, apparently washed up by the river. Officials warned that with more heavy rain forecast, recovery efforts would be rendered even more difficult. "We've had some reports of maybe some additional water coming in, obviously, that's going to impact the search and recovery efforts," said Baker. He said the weather may impact aerial patrol patterns, but "it won't deter them." Meanwhile, questions intensified over whether Trump's funding cuts had weakened warning systems, and over the handling of the rescue operation. During an at-times tense news conference, Baker skirted a question on the speed of the emergency response. "Right now, this team up here is focused on bringing people home," he said. Shel Winkley, a weather expert at the Climate Central research group, blamed the extent of the disaster on geography, the remnants of tropical storm Beryl, and exceptional drought, when dry soil absorbs less rainfall. "This part of Texas, at least in the Kerr County flood specifically, was in an extreme to exceptional drought. So that's the worst drought conditions that you can have, and we know that since May, temperatures have been above average," Winkley told reporters. The organization's media director, Tom Di Liberto, said staffing shortages at the National Weather Service had contributed to the disaster. "What happens, and this is shared not only in Texas but weather forecast offices across the country, is that the people with the most experience dealing with these extreme (events), but also communicating it, have left in a lot of places, so you can't necessarily replace that experience," Di Liberto said.
