The sector, which exported watches worth CHF26 billion (US$32.79 billion) in 2024, is already under pressure from a stronger franc and falling global demand.

Watch exports are on track to hit their lowest levels since the pandemic in 2020.

Shares in Richemont and Swatch were both down 0.8% at 8.25am, paring back losses after earlier falling as much as 3.4%, and 5%, respectively.

Today was the first day of trading following the US tariff announcement, as markets were closed on Friday for the Swiss National Day.

“The impact of the US tariffs, if they stay at 39%, could be devastating for numerous brands in Switzerland,” said Jean-Philippe Bertschy, an analyst at Vontobel.

“We expect a strong negative impact for watches in the entry- to mid-price segments,” he said.

The US is Switzerland’s leading foreign market for watches, accounting for 16.8% of exports worth about CHF4.4 billion (US$5.45 billion), according to the Federation of the Swiss Watch Industry.

Shahzaib Khan, who runs a business exporting Swiss luxury watches, said many brands would not be able to deal with the 39% tariff rate.

“I suspect … there won’t be any goods being shipped to the US until the situation clears,” he said.

“While Richemont generated 32% of its full-year 2025 sales in the watches category, its exposure to the US market should be just below 10% of overall sales,” analysts at Jefferies said.

Swatch, meanwhile, generated 18% of its 2024 sales in the US, with its CEO saying the company had raised prices by 5% following the first tariffs announcement in April.