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U.S. Tariff Hits Swiss Watch Exports, Market Plummets

10/22/2025

50 8 Full Breakdown

Summary

Story summary

The Federation of the Swiss Watch Industry reported that U.S. exports fell 55.6% in September, moving Switzerland to third in the global market.
Overall exports declined 3.1% in value and 7.6% in volume, with steel watches suffering the largest losses.
The drop is attributed to a 39% U.S. tariff, according to the Federation.
Markets in China and Hong Kong grew, but the U.S. decline overshadowed these gains.

History

Historical Context

The Smoot-Hawley Tariff Act of 1930 raised tariffs on over 20,000 imported goods, including a 39% tariff on Swiss watches, exacerbating the Great Depression by stifling international trade. This historical precedent echoes today as the U.S. faces a 55.6% decline in Swiss watch exports, highlighting the long-term impacts of protectionist policies on global market dynamics.

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Story summary

The Federation of the Swiss Watch Industry reported that U.S. exports fell 55.6% in September, moving Switzerland to third in the global market.
Overall exports declined 3.1% in value and 7.6% in volume, with steel watches suffering the largest losses.
The drop is attributed to a 39% U.S. tariff, according to the Federation.
Markets in China and Hong Kong grew, but the U.S. decline overshadowed these gains.

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