Swiss Government Extends Aid to Watchmakers
October 12, 25
(IDEX Online) - Switzerland has extended the terms of its short-time work compensation scheme for watchmakers, after the US introduced a 39 per cent tariff on their goods from August.
Companies initially sought government help after global demand slumped during the second half of 2023.
The compensation scheme, similar to furlough, was widely used during the Covid pandemic, and was re-introduced in early 2024, reimbursing employers with 80 per cent of the wages workers were losing as a result of short-time operations.
Originally the scheme was intended to last for a year. It was subsequently extended to 18 months, and now, as of 7 October, it has been increased to two years.
Swiss watch exports declined sharply in August, down 16.5 per cent overall, and down 23.9 per cent in the US. Sales spiked earlier as manufacturers rushed to export their goods ahead of the tariffs.
The Federation of the Swiss Watch Industry Exports (FH), spoke of "very negative results, both in volume and by value" across all watch categories and markets.
A government statement said the scheme was being extended "as labor market forecasts do not indicate any improvement and the US tariffs in effect since Aug. 7, 2025 are causing uncertainty".