Switzerland: Watch exports fall in May after record sales in April

Following substantial deliveries to the US in April, in light of impending tariffs, Swiss watch exports declined in May. However, the ‘boomerang effect’ proved less pronounced than anticipated, according to the Federation of the Swiss Watch Industry (FH).

After a significant increase of 18.2 percent in April, Swiss watch exports across all markets fell by 9.5 percent to 2.1 billion Swiss francs in May. 40 percent of this decline can be attributed to reduced shipments to the US, the FH announced in a statement on Thursday. This ‘significant decline’ was expected, given the substantial increase in the previous month.

In April, watch exports to the US saw an exceptional year-on-year increase of 149.2 percent. Swiss watchmakers had attempted to rapidly build up inventories in the US market to safeguard against potential tariffs. In May, shipments there fell by 25.3 percent. However, the FH noted that this ‘boomerang effect’ was ‘more moderate than expected’.

The White House’s announcements in early April regarding reciprocal tariffs came in the midst of the Geneva Watch Fair and acted as a shock to the industry, which must produce its watches in Switzerland to bear the coveted ‘Made in Switzerland’ label.

Since 2021, the US has been the most important sales market for Swiss watchmakers. Demand there has surpassed that from China and Hong Kong. With the decline in May, global watch exports since the beginning of the year totalled 10.8 billion francs – a 1.1 percent increase compared to the first five months of 2024.

"However, this result does not reflect the actual sales situation, which has seen a less favourable development," the association warned.

The export figures do not reflect actual sales, but rather retail orders as retailers replenish their inventories.

Watch exports also declined in other markets in May: by 17.4 percent to China, 10.5 percent to Japan and 12.6 percent to Hong Kong. In Europe, exports fell by 14.5 percent to the UK, 18.1 percent to France and four percent to Germany.