Swiss Watch Exports Rise in Market Distorted by Trade, Geopolitical Friction

By Andrea Figueras

Exports of Swiss watches rose in August, but the market remained distorted due to trade and geopolitical instability while the broader luxury sector faces renewed fears over demand.

Total exports of timepieces made in the Alpine nation rose 9.1% in August compared with the same period last year. Exports amounted to 1.79 billion Swiss francs, or $2.17 billion, according to data released by the Federation of the Swiss Watch Industry on Thursday. The 12-month moving average turned positive for the first time in two years, it said.

Despite the pickup, monthly exports to the U.S. dropped 19% as Swiss watchmakers continue to face volatility in the critical market due to inventory adjustments in response to President Trump's tariff policy.

Coupled with trade difficulties, the sector has been struggling this year with lower demand for luxury goods, particularly in China, as well as the hit from the U.S.-Israel war against Iran that disrupted global travel.

Exports to China rose nearly 16% in August, but year-to-date growth remained in negative territory.

The underlying picture is still uncertain, with weak and volatile trends in the U.S. and insufficient positive signs in China that could point to a sustained recovery in demand, Vontobel analyst Jean-Philippe Bertschy wrote in a research note.

Luxury companies are confronting renewed concerns about demand in China, a market that was expected to rebound and contribute to the sector's bounceback.

Stocks in the sector have rerated sharply lower in recent days due to worries over Chinese demand, rising interest rates and broader geopolitical uncertainty, Bertschy said.

The August export data don't yet justify a more constructive conclusion on global watch demand, the analyst said.

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

(END) Dow Jones Newswires

September 17, 2026 05:56 ET (09:56 GMT)