Switzerland’s exports to the United States fell sharply in August, the first full month after a 39% tariff on Swiss goods came into effect.
Seasonally adjusted foreign sales to America dropped about 22% from July, according to Swiss customs data reported Thursday.
The monthly deficit the U.S. runs with Switzerland narrowed to roughly 2.06 billion francs from 2.93 billion francs in July, underscoring how quickly the new rate is reshaping trade flows.
The U.S. down 22.1% to 3.1 billion francs, the lowest since late 2020, even as Switzerland’s overall exports were little changed thanks to stronger shipments to the European Union and Canada. Germany overtook the U.S. as Switzerland’s top destination for the month.
Swiss bullion exports to the U.S. crashed about 99% in August to 0.3 tons after uncertainty over whether cast bars would be swept into the tariff regime.
The White House later clarified that commonly traded bars would be exempt, and that exemption was formalized in early September, allowing flows to resume. The episode still distorted August trade, and it highlights how policy ambiguity can disrupt commodity supply chains in real time.
Watches, a cornerstone of Swiss manufacturing, also weakened. Industry data showed global watch exports fell about 17% year over year in August, with shipments to the U.S. down roughly 24%.
Brands are starting to pass on costs. Swatch said it will raise U.S. prices by 5% to 15%, and it has even mocked the levy with a limited-edition model sold at home.
The Jura region in the west, home to dense clusters of micromechanics suppliers, reports growing strain as order books adjust to the new math of exporting to the U.S. The mix of smaller, specialized firms and thin margins makes the shock harder to absorb quickly.
Some buyers will pull forward orders from exempt lines such as pharmaceuticals, while others will look for substitutes or reroute sourcing to markets facing lower U.S. rates.
The immediate question is how much of the tariff gets priced in at the retail level and how quickly. Early signals from Swatch suggest companies will try to share the burden with consumers.
