Swiss Watch Industry Reports Soft Start to Year as U.S. Tariff Volatility Weighs

By Andrea Figueras

Swiss watch exports slid in January, marking a weak start to the year for a beleaguered sector that has been grappling for months with challenges including tariffs in the U.S., currency headwinds and a broader downturn in demand for luxury goods.

Exports of timepieces made in the Alpine nation reached 1.9 billion Swiss francs ($2.46 billion) in January, according to figures from the Federation of the Swiss Watch Industry, or FH, released Thursday. This was 3.6% lower compared with the same period a year earlier. Exports to the U.S., a core market for Swiss watches, dropped 14%.

The U.S. slipped back into negative territory, continuing the extreme tariff‑driven volatility seen through last year's second half, Citi's Thomas Chauvet and Alberto Cecchetto said in a research note.

President Trump targeted Switzerland with harsh trade measures last year, imposing a 39% tariff over the summer. These were later reduced to 15%, on par with the country's neighbors in the European Union.

Despite the downbeat results in the U.S., analysts at Bernstein said that "Swiss watch demand remains on track for a gradual recovery." Exports of Swiss watches to Hong Kong and China jumped 2.6% and 5%, respectively. These trends suggest that confidence has started to return to the market, the brokerage said. Chinese consumers, who for years had propelled sales of luxury goods, have slashed their spending on such products in recent years due to the country's economic challenges. The turmoil in China has weighed on the performance of most luxury brands, which relied heavily on this market to fill their coffers.

The uptick seen in China is encouraging, Vontobel's Manuel Lang wrote in a note. While global monthly data could remain volatile in the first half, underlying demand in China looks solid and should trend more positively as 2026 progresses, Lang said.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

February 19, 2026 06:00 ET (11:00 GMT)