The steep decline followed an exceptionally strong April and was led by a significant pullback in the United States market.

The US alone accounted for over 40% of the global export drop, with shipments to the country plunging 25.3% in May. This comes on the heels of an extraordinary 149.2% surge in April, a spike widely attributed to companies rushing orders in anticipation of potential tariff changes.

Other key markets also reported substantial declines. Exports to China dropped 17.4%, while Japan and the United Kingdom recorded contractions of 10.5% and 14.5% respectively. Hong Kong posted a 12.6% decrease, adding to the list of underperforming destinations.

Despite the May dip, cumulative exports for the year remained in positive territory. From January to May, Swiss watch exports rose 1.1% year-on-year to CHF 10.8 billion (USD 12.4 billion). However, FHS cautioned that the year-to-date figures may not accurately reflect the true market dynamics, noting that recent volatility has obscured a more muted underlying trend.

The dramatic month-on-month swings underscore the current uncertainty in global luxury markets, particularly in North America and Asia, where shifts in consumer sentiment and policy fears are influencing buying patterns. The industry now watches closely to see whether the June data will signal a stabilisation or a deeper correction.