Swiss watch exports increased as US importers ordered higher volumes of goods to accumulate stock for the holidays, ahead of the tariff hike on Swiss supplies.
Shipments of luxury timepieces rose 7% year on year to CHF 2.4 billion ($3 billion) in July, the Federation of the Swiss Watch Industry reported Thursday. The increase came before the US raised tariffs on Swiss exports from 10% to 39% on August 7.
“Exports returned to growth in July, boosted by the uncertainties surrounding US tariffs,” the federation said. “Exports to the US jumped in anticipation of high US tariffs. In reality, this was a move to build up local stocks and provides little insight into the actual state of the market.”
Exports to the US were up 45% to CHF 554.5 million ($689.7 million), while shipments to Japan dropped 10% to CHF 169.1 million ($210 million). China slipped 7% to CHF 164.2 million ($203.9 million). Supply to Hong Kong rose 4.6% to CHF 155.6 million ($193.2 million), and orders to the United Kingdom saw a 0.2% rise to CHF 147.2 million ($182.8 million). Exports to Singapore climbed 15% to CHF 147 million ($182.6 million).
Timepieces in most price ranges grew. Exports of units valued at CHF 200 ($248) to CHF 500 ($621) advanced 7%, while those between CHF 500 to CHF 3000 ($3,725) gained 0.4%. Watches that cost over CHF 3,000 jumped 9%. The only price category that saw a drop were those below CHF 200, which fell 1.9%.
From January to July, exports rose 1% year on year to CHF 15.32 billion ($19.02 billion). However, the numbers received a boost from the upcoming US tariffs and do not reflect market trends, the federation noted.
Image: A display of Swiss watches. (Shutterstock)
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