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Investing.com -- Watches of Switzerland Group Plc fell as much as 7.7% on Friday after U.S. President Donald Trump imposed a 39% tariff on Swiss imports, a blow to the retailer’s high-margin U.S. business.
The U.K.-listed luxury watch retailer, which sells Rolex, Patek Philippe, and other Swiss brands, relies heavily on U.S. consumers.
The U.S. accounted for a large portion of Swiss watch exports in 2024, valued at 4.4 billion francs, about 17% of global shipments.
The tariff follows a prior threat in spring 2025 of a 31% duty, which briefly spiked Swiss exports as retailers stockpiled inventory.
However, by May, U.S.-bound shipments had dropped 25%, contributing to a 9.5% overall decline in global Swiss watch exports.
Watches of Switzerland’s first half revenue rose 7% to £1.65 billion but saw margins thin due to U.S. expansion and supply chain costs.