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Investing.com -- Switzerland’s exports decreased 5.3% to 70.1 billion Swiss francs ($87.53 billion) in the second quarter, down from 74.0 billion francs in the first quarter, according to Swiss finance-department data released Thursday.
The decline was largely attributed to a reversal of tariff frontrunning, particularly in exports to the United States, which fell nearly 30%. This sharp decrease followed a significant increase in the previous quarter when companies rushed to fulfill orders ahead of anticipated U.S. trade tariffs announced in April by President Trump.
Swiss imports also declined during the quarter, widening the country’s trade surplus slightly to 13.4 billion francs.
The finance department noted that the swing in exports between quarters was almost entirely due to the pharmaceutical sector. Swiss pharma exports dropped close to 10% over the period, mirroring a similar pattern seen in Ireland, another major European pharmaceutical hub, where drug factories had increased production ahead of the April tariff announcement.
The watch industry, another key export sector for Switzerland, is facing challenges amid global economic uncertainty. Swiss watch exports to the U.S. fell 18% last month, highlighting tensions in the trading relationship between the two countries.
Watchmaker Swatch Group (SIX:UHR), which produces brands including its namesake as well as luxury timepieces like Omega and Blancpain, reported Thursday a 10% drop in sales during the first six months of the year, citing weakening demand in China. Luxury-goods group Richemont (SIX:CFR) similarly reported declining sales in its watch division in recent months.
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