Swiss luxury watchmakers' shares drop after Trump tariff shock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 04 2025
0mins
Source: Reuters
Impact of U.S. Tariffs on Swiss Watchmakers: Shares of Swiss luxury watchmakers Richemont and Swatch experienced volatility following the announcement of a 39% tariff on Swiss imports by U.S. President Donald Trump, raising concerns about the potential devastating effects on the industry amid already declining global demand and a stronger franc.
Market Reactions and Future Outlook: Analysts noted that the tariffs could significantly impact sales, particularly as the U.S. is Switzerland's largest market for watches, accounting for 16.8% of exports; both companies are adjusting strategies, with Swatch having raised prices in anticipation of the tariffs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
