HK Watchmakers Say Tariff Impact Controllable, Confident on US Sales
On.cc · 1 SOURCES1 day ago6 MIN
Summary
Hong Kong's watch industry is weathering US tariff pressures better than expected, according to two major sector players interviewed this week. Executives from Golden Eagle Manufacturing and Pride Precision both expressed confidence that their businesses can sustain growth despite elevated duties, citing structural advantages including movement sourcing and pricing strategies that shield factories from direct impact.
Key Points
- Hong Kong ranks as the world's largest importer of complete watches and second-largest exporter, making it a critical hub in the global timepiece supply chain
- Golden Eagle Manufacturing Executive Director Chan Chi-to (陳志韜) revealed that nearly 90% of the company's business serves the US market
- Tariff costs are predominantly borne by American importers and subsequently transferred to consumers, limiting direct damage to manufacturing operations
- During peak tariff periods exceeding 150%, Golden Eagle's mainland factories never suspended production, while neighboring furniture exporters were forced to temporarily close
- Watch origin classification depends on movement sourcing, and most of Golden Eagle's US-bound products use Swiss movements rather than Chinese-made movements
- Pride Precision Director and General Manager Lam Kai-yui (林啟睿) noted that the elimination of duty-free treatment for shipments under $800 has disrupted parts of the industry
- Nearly 80% of Pride Precision's microbrand business is concentrated in the US market, creating exposure to regulatory changes
- Both companies have adopted Delivered Duty Paid pricing models to provide transparency to customers on total costs
- Industry supply chains, particularly for components like watch cases, bracelets, and hands, remain highly concentrated in Guangdong Province and cannot be easily relocated
Why It Matters
The resilience demonstrated by Hong Kong's watch exporters suggests the territory's manufacturing sector has developed effective strategies to navigate geopolitical trade tensions without major operational disruptions. For consumers and businesses planning purchases, the shift toward inclusive pricing models means clearer cost visibility when buying timepieces from Hong Kong-based brands. The sector's confidence in maintaining growth trajectories signals continued opportunities for Hong Kong's role as a global trade hub even as tariff regimes evolve .
The resilience demonstrated by Hong Kong's watch exporters suggests the territory's manufacturing sector has developed effective strategies to navigate geopolitical trade tensions without major operational disruptions. For consumers and businesses planning purchases, the shift toward inclusive pricing models means clearer cost visibility when buying timepieces from Hong Kong-based brands. The sector's confidence in maintaining growth trajectories signals continued opportunities for Hong Kong's role as a global trade hub even as tariff regimes evolve .