Why Swatch May Be Running Out of Time

The Swatch Group is credited with saving the Swiss watch industry in the 1980s. But right now the company is under pressure, hit by a spending slowdown in China. US President Donald Trump’s trade war has only piled on to its problems.

In August, Trump imposed a 39% tariff on imports from Switzerland, steeper than the 31% he had previously threatened. The surcharge, though like most others by Trump subject to ongoing litigation, is the biggest among developed countries and compares with just 15% in the neighboring European Union.

With falling sales, Swatch’s leadership has been criticized by some shareholders. Steven Wood, an activist investor, even attempted to win a seat on the company’s board. His intervention, rare in the luxury and watch sectors, may underline the frustration exhibited by other shareholders. So can Swatch turn its fortunes around?

00:00 Introduction
01:31 Switzerland & Swatch
03:00 Quartz crisis
05:00 External headwinds
07:23 Leadership & investors
08:49 MoonSwatch
09:24 Storytelling

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Post from Bloomberg on August 15, 2025

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