Swiss Watch Shares Slide on U.S. Tariff Shock

The U.S. President Donald Trump announced a 39% tariff on Swiss imports which caused shares of Swiss watchmakers Richemont and Swatch to decline on Monday. The watch industry faces dual challenges from a strong franc and declining worldwide market demand because its 2024 exports are projected to reach their lowest point since 2020. The stock prices of Richemont and Swatch experienced their biggest drops at 3.4% and 5% before they recovered from their losses. The continued implementation of tariffs would create a devastating impact on certain brands according to market analysts. The United States represents the biggest foreign market for Swiss watch exports because it received 16.8% of total exports in 2024.
Swatch CEO Nick Hayek requested direct meetings between Swiss officials and Trump while investors highlighted the unstable nature of tariff policies. The new measures will become effective on August 7th.