Swiss watch sellers in Lucerne have endured a tough three months since US President Donald Trump piled pressure on the luxury business with the threat of hefty tariffs‭, ‬reducing interest from tourists who flock to the city in part to shop for watches‭. ‬Reuters spoke with over a dozen industry workers in the watch-selling hub‭, ‬including shop managers and salespeople‭, ‬who said tariff uncertainty has weighed on a sector that exported watches worth 26‭ ‬billion Swiss francs‭ (‬Dh119‭ ‬billion‭) ‬in 2024‭. ‬The business is‭ ‬already coping with weak Chinese demand‭, ‬while in Switzerland a franc supercharged by US trade uncertainty has made the watches‭ ‬more expensive for foreign tourists‭.‬

Switzerland‭, ‬which relies heavily on trade‭, ‬was stunned when Trump said in April he would hit the country with a 31‭ ‬per cent tariff‭, ‬well above the 20‭ ‬per cent rate proposed for the European Union‭. ‬“That obviously really put the brakes on‭,‬”‭ ‬said Ken May‭, ‬boutique manager at a Hublot store‭.‬

Trump subsequently suspended the tariffs for 90‭ ‬days‭, ‬maintaining a 10‭ ‬per cent duty‭, ‬and later extended his deadline until August 1‭. ‬That sparked a rush by watchmakers to move their products to the US ahead of the tariffs‭, ‬causing Swiss exports to yo-yo up and down‭.‬

The industry is on track to log its lowest export volumes for wristwatches since the pandemic in 2020‭, ‬according to data from the Federation of the Swiss Watch Industry‭ (‬FH‭). ‬“We have to open other markets‭,‬”‭ ‬Yves Bugmann‭, ‬FH president‭, ‬said‭. ‬“We have to look for other opportunities‭.‬”

Unit exports were down nearly 5‭ ‬per cent in the January-May period year-over-year‭, ‬though marginally up in value terms‭.‬

This summer‭, ‬there are noticeably fewer tourists packing Lucerne's main watch-selling street‭. ‬Those who come are more careful with their money‭, ‬salespeople said‭.‬

Thousands of watches glint at shoppers in Lucerne's Grendelstrasse‭, ‬which boasts stores from Rolex to Patek Philippe‭. ‬Watches in these shops typically cost between several hundred francs and more than 500,000‭ ‬francs‭ (‬Dh2.3‭ ‬million‭).‬

At Patek Philippe‭, ‬which sells watches online for nearly 3.8‭ ‬million francs‭ (‬Dh17.5‭ ‬million‭), ‬customers take an elevator to an upstairs boutique‭. ‬Here‭, ‬a watchmaker wearing a white lab coat delivers customised timepieces on a tray to clients‭. ‬“Everything is just a bit slower than last year‭,‬”‭ ‬said Michael Haas‭, ‬boutique manager of a Breitling store in Lucerne‭. ‬“We're in a luxury business‭, ‬and as a rule‭, ‬that's where people save first when the going gets tougher‭.‬”‭ ‬

MENAFN13072025000049011007ID1109793629