Tariffs Prompt Surge in Swiss Watch Exports to US
August 21, 25
(IDEX Online) - Exports of Swiss watches in July rebounded, up 6.9 per cent to CHF 2.4bn (USD 2.98bn) after two months of decline.
The growth was largely driven by front-loading of shipments ahead of 39 per cent US tariffs.
The Federation of the Swiss Watch Industry Exports (FHS) acknowledged that without the tariff-related increase in US sales, overall exports for the month would have fallen by 0.9 per cent.
"In reality, this was a move to build up local stocks and provides little insight into the actual state of the market," it said.
The US started charging a 39 per cent tariff on all Swiss watch imports, as of 7 August. Manufacturers responded by building up their US stocks ahead of that deadline as a short-term fix.
Swatch Group CEO Nick Hayek told Reuters: "We shipped much more product to the United States, so this means there is not an immediate impact on us."
Sales to China were down 6.5 per cent after a 6.1 per cent increase in June. And Hong Kong was up 4.6 per cent after a 10.6 per cent drop in June.