Sales of Swiss watches have been shaken since US President Donald Trump has put pressure on luxury businesses with the threat of high duties, reducing the interest of tourists flocking to the country, including to shop for watches.

Reuters spoke with more than twelve employees in the sector at the watal sales hub in Lucerne, including store managers and sellers, who stated that the uncertainty about duties has burdened an industry that exported $ 26 billion to $ 26.

The industry is already facing the weak Chinese demand, while in Switzerland, a franc overpriced by commercial uncertainty has made watches more expensive for foreign tourists.

Switzerland, which is largely supported by trade, remained uneasy when Trump said in April that it would hit the country with a duty of 31%, well above the rate proposed for the European Union.

“This apparently put a really brake on the industry,” said Ken May, a Hublot store manager.

Trump then suspended the duties for 90 days, maintaining a 10%duty, and later extended his deadline by August 1st. This caused a rush from watchmakers to transport their products to the US before duties.

At low pandemic sales

The industry is close to recording the lowest volume of export watches from the 2020 pandemic, according to data from the Swiss Swiss Industry (FH).

“We have to look at other markets,” said Yves Bugmann, president of FH. “We have to look for other opportunities.”

Exports of Swiss watches decreased by almost 5% in January-May on an annual basis, although they increased marginally in value terms.

This summer, there are significantly fewer tourists who flood the main watches of Lucerne. Those who come are more careful with the money they spend, the sellers said.

Thousands of watches are polished to prospective buyers at Lucerne’s Grendelstrasse, which features stores from Rolex to Patek Philippe. The watches in these stores usually cost a few hundred franks to more than 500,000 francs.

In Patek Philippe, customers get an elevator to reach a boutique on the upper floor. Here, a watchmaker wearing a white laboratory apron shows customers personalized watches on disc.

“Everything moves a little slower than last year,” said Michael Haas, a boutique manager of a Breitling store in Lucerne. “We are a luxury business, and as a rule, when things are difficult, people prefer to save rather than spend it,” he said.