Swiss luxury watchmakers’ shares fall after Trump’s tariff hit

In early trading on Monday, shares of Swiss luxury watchmakers like Richemont and Swatch experienced volatility, indicative of the difficulties confronting the industry after U.S. President Donald Trump enacted a 39% tariff on imports from Switzerland.

The industry, which exported watches valued at 26 billion Swiss francs ($33 billion) in 2024, is already feeling the strain of a strengthening franc and declining worldwide demand.

Watch exports are set to hit their lowest levels since the pandemic in 2020.

Jean-Philippe Bertschy, an analyst at Vontobel, stated, “If U.S. tariffs stay at 39%, the consequences could be disastrous for many brands in Switzerland.”

At 09:06 GMT, shares of Richemont and Swatch had decreased by approximately 1%, but they were recovering from earlier declines of up to 3.4% and 5%, respectively.

Bertschy connected the action to expectations that Switzerland will keep receiving better treatment: the tariffs take effect on August 7.