Trump tariffs turn the screw on Swiss watchmakersーNHK WORLD-JAPAN NEWS
swiss-made watches have a global fan base and the industry is a pillar of the country’s economy the US is the biggest market for the time pieces but that is turning into a liability due to President Trump’s tariff policy nhk World’s Donovan Hanell has more one of the world’s largest annual trade fairs from wrist watchers took place in April in Switzerland luxury brands used the event to unveil new models and it attracts tens of thousands of visitors and buyers from all around the globe you really cannot replace handling and touching and holding the new products you you just can’t do that virtually watches are Switzerland’s third largest export around 17% go to the United States making it the largest market in value terms commerce Howard L when Trump announced a 31% tariff on Swiss products in April watch makers scrambled to ship more products to the US before the levies hit we were expecting tariffs on Europe but we didn’t see a levy this steep coming sales of luxury watches in the US will fall the tariffs are the latest body blow to the Swiss watch industry it was hit hard by the co pandemic and sales in mainland China and Hong Kong plunged last year amid consumer concerns about the economy um I think there the number of people that are interested are have have reduced um and this is probably due to some economic factor let’s say you have 50 people being interested in one particular watch whereas now you might be looking at half that amount this has hit production at Swiss watch makers lashon in the northwest is known for its watch making industry it is registered as a UNESCO world cultural heritage site this maker of watch parts started their business in this town over 100 years ago the company rebuilt its factory four years ago in anticipation of a postcoid bounce back in demand but it is now operating at about 70% of capacity many shelves for finished products are empty due to the fall of in China sales demand from our clients began slowing down around the fall in 2023 this worsened in the summer of last year now it’s a clear-cut slump the firm laid off 70 of its 400 employees as sales began to slow but the business outlook is now worsted because of the US import tariffs first it was China’s economic downturn now US trade measures have triggered a global trade war affecting all countries i don’t see an end in sight to this switzerland runs a large trade surplus with the US which will make for tough negotiations to lower or eliminate the import levels for the Swiss watch industry the outcome of the talks will be crucial donovan Rales world
Swiss-made luxury watches have a global fan base, especially in the US, their biggest market. But that may turn into a liability as President Donald Trump’s tariff policy threatens a sales slowdown. #business #usa #trumptariffs #europe #china #trade
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