The US watch and jewelry market recorded a modest 1.0% sales increase in July, according to newly released data from the US Department of Commerce. The uptick, however, was less a reflection of consumer demand and more the result of exporters and retailers rushing to move inventory ahead of looming tariff hikes.
The small rise contrasts sharply with last year’s strong momentum. Average monthly growth for the first seven months of 2025 stands at just 0.6%, compared with over 5% during the same period in 2024.
In June, sales were initially estimated to have fallen by 1.7%, but revised figures now place the decline at a milder 0.9%, based on actual transaction data.
The slowdown in consumer spending has been amplified by uncertainty around reciprocal US tariffs, which are expected to push up retail prices and further dampen demand.
Meanwhile, Swiss watch exports to the US rose 6.9% in July, largely due to manufacturers front-loading shipments to sidestep tariffs as high as 39%.
Industry observers caution that while the July rise offers temporary relief, the underlying trend suggests a challenging environment for watch and jewelry retailers, with tariff pressures and weak consumer sentiment likely to weigh on sales in the months ahead.
Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.
