Swiss watch exports declined in November 2025, slipping further as the industry awaited clarity on a trade agreement with the United States that eased punitive import tariffs. The drop highlights the pressure faced by one of Switzerland’s most important export sectors before the tariff relief took effect. 

Data from the Federation of the Swiss Watch Industry showed a 7.3% drop in overall exports last month compared with November 2024, marking the fourth consecutive month of decline for the sector. The downturn reflects weakening overseas demand as companies paused shipments amid tariff uncertainty. 

Exports to the U.S. the largest single market for Swiss watches plunged by around 52%, underscoring the impact of trade barriers on the industry’s performance. The sharp fall came before a trade deal reached in mid-November that reduced U.S. tariffs on Swiss imports from around 39% to 15%, a rate closer to what other countries enjoy. The change was later confirmed to apply retroactively to Nov. 14.

Swiss watchmakers and related manufacturers from precision instruments to luxury timepieces were among the hardest hit by the tariff measures introduced earlier in the year, as the higher duties dampened demand and disrupted shipment patterns. The central bank also noted that machinery and precision sectors felt notable strain.

The slowdown was not limited to the U.S. market. Export volumes also fell in parts of Asia, including China and Japan, after recent bouts of growth, suggesting that weakness in global luxury demand was spreading beyond any single region.

Despite the November contraction, analysts expect exports to stabilise and improve in the coming months now that the tariff rollback has been implemented. The reduced tariff rate should make Swiss watches more competitive in the U.S. and provide relief to companies that had been adjusting pricing, shipping and inventory strategies to cope with higher levies. 

Even with tariff relief now in place, the current 15% duty remains higher than the roughly 2% rate Swiss goods faced before the dispute, meaning the industry still contends with elevated costs compared with historical levels. 

Swiss watch brands have already begun responding to the shifting trade landscape. Many raised prices earlier in 2025 to offset anticipated tariff costs, while others shipped inventory ahead of tariff increases to soften the impact. With the tariff cut retroactively applied, some companies may adjust pricing strategies again or pursue refunds on excess duties paid during the high-tariff period.

The broader context for these trade shifts includes a November U.S.–Swiss tariff agreement under which Switzerland secured a reduction of duties on various imports, including watches, while also pledging investment commitments in the U.S. economy through 2028

As the sector enters 2026, export performance will be watched closely by industry executives and analysts alike. The dual pressures of trade costs and uneven luxury demand in key markets such as Asia and Europe add complexity to the recovery outlook, even as tariff reductions offer a foundation for renewed growth. 

Overall, the November export figures capture a challenging moment for Swiss watchmakers one that saw significant disruption before the promise of reprieve under a new tariff regime, and a reminder of how trade policy can ripple through even the most established luxury industries.