Swiss watch exports are losing momentum

Swiss watch exports fell in January by 3.6% to 1.9 billion Swiss francs, due to a decline in exports of luxury watches and precious metals, especially to the United States, whose exports fell by 14%.
In contrast, exports to China, Hong Kong and France increased by 5%, 2.6% and 37%, respectively. According to Bloomberg, Swiss watch exports resumed their long decline in January after a brief truce recorded the previous month as a result of the easing of US tariffs.
The Federation of the Swiss Watch Industry reported yesterday that exports fell by 3.6% last month on an annual basis to 1.9 billion Swiss francs ($2.5 billion), and watches of the highest price category made of precious metals led this decline.
This represents a setback for a sector that suffered major turmoil last year due to punitive tariffs imposed by US President Donald Trump. Retroactive easing from November had boosted exports the following month, but the value of watches exported to the sector’s largest market fell by 14% in the latest data.
In general, the value of watches priced above 3,000 francs decreased by 8.1%. Exports of watches made of precious metals contracted by 14%, which was not offset by a 16% rise in bi-metallic watches.
Meanwhile, exports to China and Hong Kong rose by 5% and 2.6% respectively, providing a boost to the sector after several months of declines. This coincided with preparations for the Lunar New Year, when brands usually release more inventory in preparation for a period of family gatherings and gift exchanges. On the other hand, exports to France jumped by 37%, while the Singapore and United Kingdom markets turned into negative territory.