Swiss luxury watchmakers’ shares, including Richemont, and Swatch, were volatile in early trade on Monday, reflecting the challenge for the industry after US President Donald Trump set a 39 percent tariff on Swiss imports.
The sector, which exported watches worth 26 billion Swiss francs ($33 billion) in 2024, is already under pressure from a stronger franc and falling global demand.
Watch exports are on track to hit their lowest levels since the pandemic in 2020.
“The impact of the US tariffs, if they stay at 39 percent, could be devastating for numerous brands in Switzerland,” said Jean-Philippe Bertschy, an analyst at Vontobel.
Shares in Richemont and Swatch were both down around 1 percent at 9:06 GMT, paring back losses after earlier falling as much as 3.4 percent, and 5 percent, respectively.
Bertschy linked the move to hopes of Switzerland still getting a better deal – the tariffs are effective as of August 7.
Swatch Group chief executive Nick Hayek called on Swiss president Karin Keller-Sutter to meet Trump.
“Tariffs can change at any moment due to the unpredictability of the Trump administration,” said Georges Mari, co-owner of Zurich-based investment firm Rossier, Mari & Associates, which holds shares in Swatch, adding that it is “impossible to make a serious forecast”.
Monday was the first day of trading following the US tariff announcement, as markets were closed on Friday for the Swiss National Day holiday.
The US is Switzerland’s leading foreign market for watches, accounting for 16.8 percent of exports worth about 4.4 billion francs, according to the Federation of the Swiss Watch Industry.
While Richemont generated 32 percent of its full-year 2025 sales in the watches category, its exposure to the United States market should be just below 10 percent of overall sales, analysts at Jefferies said.
Swatch, meanwhile, generated 18 percent of its 2024 sales in the United States, with its CEO saying the company had raised prices by 5 percent following the first tariffs announcement in April.
By Isabel Demetz, Helen Reid; Editor: Adam Jourdan, Joe Bavier, Toby Chopra
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