Swiss Watch Exports Slump Again as US Rebound Fades

The Swiss watch industry has been dealt a blow as exports slumped once again in January, reversing the brief rebound seen in December. According to the Federation of the Swiss Watch Industry, exports declined by 10.4% in January compared to the same period last year. This marks a significant setback for the industry, which had been hoping for a sustained recovery following the easing of US tariffs.

The decline in exports is largely attributed to a drop in demand from the US market, which has been a key driver of growth for the industry. The US market had shown signs of recovery in December, with exports increasing by 4.1% compared to the same period in 2024. However, this rebound has proven to be short-lived, with exports declining by 12.6% in January.

The slump in Swiss watch exports is a concern for the industry, which has been struggling to recover from the impact of the COVID-19 pandemic. The pandemic had led to a significant decline in demand for luxury goods, including watches, as consumers became more cautious with their spending. While the industry had been hoping for a swift recovery, the latest data suggests that the road to recovery may be longer than expected.

The decline in exports is also a reflection of the challenging global economic environment. The ongoing trade tensions between the US and China, as well as the uncertainty surrounding Brexit, have created a sense of uncertainty among consumers, leading to a decline in demand for luxury goods.

The Swiss watch industry is a significant contributor to the country's economy, accounting for around 10% of total exports. The industry is also a major employer, with many small and medium-sized enterprises (SMEs) relying on the industry for their livelihood.

In an effort to boost demand, some Swiss watchmakers have been focusing on the Middle East and Africa region, which has been identified as a key growth market. The region's growing middle class and increasing demand for luxury goods make it an attractive market for Swiss watchmakers.

In fact, the Middle East and Africa region has been a bright spot for Swiss watch exports in recent years. According to the Federation of the Swiss Watch Industry, exports to the region increased by 5.1% in 2025, making it one of the few regions to show growth.

Despite the challenges facing the industry, some Swiss watchmakers remain optimistic about the future. They point to the growing demand for luxury goods in emerging markets, as well as the increasing popularity of online shopping, as opportunities for growth.

However, others are more cautious, citing the ongoing trade tensions and uncertainty surrounding the global economy as major concerns. They argue that the industry needs to be more proactive in addressing these challenges, rather than relying on traditional markets and distribution channels.

As the Swiss watch industry navigates these challenges, it is clear that the road to recovery will be long and uncertain. However, with its rich history and tradition of innovation, the industry is well-positioned to adapt to the changing global landscape and emerge stronger in the long term.

Sources:
* Federation of the Swiss Watch Industry
* Horizons Middle East & Africa, Bloomberg