Swiss watch exports declined in May after an unusual spike in US demand in April as the trade attempted to beat rising import tariffs.
Shipment of timepieces fell 10% year on year to CHF 2.09 billion ($2.56 billion) for the month, the Federation of the Swiss Watch Industry reported last week. The dip followed an 18% jump in April.
Exports to the US plummeted 25% to CHF 268.2 million ($328.1 million), while China experienced a 17% drop to CHF 165.6 million ($202.6 million). Meanwhile, shipments to Japan slid 11% to CHF 158.9 million ($194.4 million) and those to Hong Kong were down 13% to CHF 156.7 million ($191.7 million).
“The United States accounted for over 40% of the global decline,” the federation noted. “Although more moderate than expected, this boomerang effect followed the increase of 150% seen in April. Japan and the United Kingdom joined the list of markets in sharp decline, which is already dominated by China and Hong Kong. The United Arab Emirates was the only one of the top 12 markets to achieve positive performance in May but has still been on a downward trend since the start of the year.”
Timepieces between CHF 500 ($612) to CHF 3,000 ($3,670) represented the only price category to see a rise, increasing 0.2%. Watches above CHF 3,000 slipped 11%, while those worth between CHF 200 ($245) to CHF 500 plunged 14%, and those that cost below CHF 200 fell 10%.
From January to May, exports rose 1.1% year on year to CHF 10.76 billion ($13.16 billion). However, the improvement does not reflect sales trends, which have been comparatively weaker, it noted.
Image: A display of Swiss watches. (Shutterstock)
