US tariffs harm Swiss exports, leading to a decline in watch sales

October 21, 2025 / 1:54 PM

Sharjah24-AFP: Switzerland’s export-driven economy has faced a significant setback following the implementation of strict US tariffs, with official figures released on Tuesday showing a 3.9 per cent overall decline in exports between July and September. The most notable impact was observed from the United States, where exports dropped by 8.2 per cent, as the Alpine nation confronted 39 per cent tariffs introduced by US President Donald Trump in August.

According to the Swiss Federal Customs Service, total exports for the third quarter amounted to $84 billion, a decrease of nearly 4 per cent from the previous quarter, representing a significant setback for key industries, particularly watchmaking, chemicals, and pharmaceuticals.

Watch exports plunge over 50 per cent

The Federation of the Swiss Watch Industry reported that watch exports to the US more than halved in September, plunging by 56 per cent as American importers reduced their orders. This significant decline wiped out earlier gains in several Asian markets, including China and South Korea, the federation noted.

The September collapse followed a sharp 24-per-cent drop in August, worsening losses for a sector that exemplifies Swiss craftsmanship and exports. Overall, the value of watch exports across all markets fell by 3.7 per cent in the third quarter, reflecting broader challenges faced by the luxury goods industry amid global trade disruptions.

Impact across sectors and regions

The decline in exports extended beyond watchmaking. The Swiss chemical and pharmaceutical industries, long considered pillars of the country’s economy, experienced a 7.2 per cent decrease during the same period.

Exports to Asia decreased by 3.3 per cent, mainly due to lower shipments to China, while exports to the European Union—Switzerland’s top trading partner—fell by 5.9 per cent. Although not an EU member, Switzerland is part of the bloc’s single market, making the decline especially concerning for policymakers.

Tariff fallout and pre-emptive stockpiling

The report highlights the volatility Swiss exporters experienced throughout the year. In the first quarter, exports surged as American pharmaceutical importers hurried to stockpile Swiss products ahead of upcoming tariffs. The second quarter was characterised by uncertainty, with watch exports briefly increasing in April and July, just before the tariffs were implemented.

The newly introduced 39-per-cent US tariff on Swiss goods exceeds the 15-per-cent levy on imports from the European Union under Washington’s separate agreement with Brussels signed in August. As Swiss exporters brace for continued pressure, the data highlight the wide-reaching consequences of escalating trade tensions, leaving one of Europe’s most stable economies facing increased uncertainty in its global markets.