Published by Global Banking & Finance Review®
Posted on August 4, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleSwiss watchmakers' shares drop as Trump imposes 39% tariffs on Swiss imports, affecting major brands like Richemont and Swatch.
By Isabel Demetz
(Reuters) -Swiss luxury watchmakers' shares, including Richemont and Swatch, were volatile in early trade on Monday, reflecting the challenge for the industry after U.S. President Donald Trump set a 39% tariff on Swiss imports.
The sector, which exported watches worth 26 billion Swiss francs ($33 billion) in 2024, is already under pressure from a stronger franc and falling global demand.
Watch exports are on track to hit their lowest levels since the pandemic in 2020.
"The impact of the U.S. tariffs, if they stay at 39%, could be devastating for numerous brands in Switzerland," said Jean-Philippe Bertschy, an analyst at Vontobel.
Shares in Richemont and Swatch were both down around 1% at 0906 GMT, paring back losses after earlier falling as much as 3.4%, and 5%, respectively.
Bertschy linked the move to hopes of Switzerland still getting a better deal - the tariffs are effective as of August 7.
Swatch Group Chief Executive Nick Hayek called on Swiss President Karin Keller-Sutter to meet Trump.
"Tariffs can change at any moment due to the unpredictability of the Trump administration," said Georges Mari, co-owner of Zurich-based investment firm Rossier, Mari & Associates, which holds shares in Swatch, adding that it is "impossible to make a serious forecast".
Monday was the first day of trading following the U.S. tariff announcement, as markets were closed on Friday for the Swiss National Day holiday.
The U.S. is Switzerland's leading foreign market for watches, accounting for 16.8% of exports worth about 4.4 billion francs, according to the Federation of the Swiss Watch Industry.
While Richemont generated 32% of its full-year 2025 sales in the watches category, its exposure to the United States market should be just below 10% of overall sales, analysts at Jefferies said.
Swatch, meanwhile, generated 18% of its 2024 sales in the United States, with its CEO saying the company had raised prices by 5% following the first tariffs announcement in April.
(Reporting by Isabel Demetz and Helen Reid; Editing by Adam Jourdan, Joe Bavier and Toby Chopra)
The Swiss franc is the official currency of Switzerland and is known for its stability and strong value compared to other currencies.
Luxury watch exports refer to the sale of high-end watches produced in Switzerland to international markets, contributing significantly to the Swiss economy.
Market volatility refers to the degree of variation in trading prices over time, indicating the level of risk and uncertainty in the market.
Share performance refers to how well a company's stock performs in the market, typically measured by price changes and trading volume.
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