Watches of Switzerland hit by Trump's new 39% Swiss import tariff
The retailer, known for selling Rolex and other Swiss timepieces in the U.K. and U.S., has been hit hardest by the latest tariff measures. Financial markets in Switzerland were closed for a public holiday, initially sparing listed producers such as Richemont and Swatch Group AG from immediate share price reaction.
Swiss watch exports had already surged earlier this spring, as Trump threatened a 31% levy. Importers rushed to bring in inventory ahead of potential tariffs, before volumes eased in anticipation of a possible compromise.
If the 39% tariff proceeds, it could lead to U.S. retail price hikes of more than 20%, according to analysts at Jefferies led by James Grzinic. However, there remains a possibility that the measure won't be implemented.
'The one-week hiatus until implementation suggests this could be a negotiating tactic,' Grzinic said in a note.
Swiss watch exports fell by nearly 10% in May, largely driven by a drop in shipments to the U.S.
'The rise of 'luxury fatigue,' a declining 'feel-good factor' from luxury purchases, and worsening consumer sentiment all contribute to a less optimistic outlook,' Vontobel analyst Jean-Philippe Bertschy wrote in a note last month.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
a minute ago
- Euronews
Former Superman actor Dean Cain says he's joining Trump's ICE agency
Dean Cain, the actor best known for playing Superman in the 90s TV series Lois & Clark: The New Adventures of Superman, has announced he's joining US Immigration and Customs Enforcement (ICE) - the controversial agency central to Donald Trump's intensifying immigration crackdown. Speaking to Fox News, Cain said he has spoken with agency officials and will be sworn in as an agent 'ASAP.' Pressed on why he decided to sign up, the 59-year-old actor explained: 'This country was built on patriots stepping up, whether it was popular or not, and doing the right thing. I truly believe this is the right thing.' He added: 'We have a broken immigration system. Congress needs to fix it, but in the interim, President Trump ran on this. He is delivering on this. This is what people voted for. It's what I voted for and he's going to see it through, and I'll do my part and help make sure it happens.' The announcement comes after Cain, who has long been a vocal supporter of Trump's and his MAGA movement, posted a promotional video to his social media channels, urging fans to join ICE. "ICE is arresting the worst of the worst and removing them from America's streets. I like that. I voted for that. They need your help, we need your help, to protect our homelands and our families," he said. The timing of Cain's move comes as ICE has dramatically ramped up its operations. The agency has been granted an additional $75 billion (€64 billion) in federal funding - part of what Trump has dubbed his 'big beautiful bill' - and is now reportedly targeting a minimum of 3,000 arrests per day. These increasingly aggressive raids have swept up not only undocumented immigrants, but also individuals with legal protections and even American citizens. Critics argue that many of those detained are being forced through a deportation system that is rapidly abandoning the most basic principles of due process and care. In response, protests have broken out in cities across the United States. However, the Trump administration has taken a hardline stance against public dissent, prosecuting not only demonstrators but also civilians who film or verbally object to ICE arrests as they happen. Cain's decision to align himself with ICE has not gone unnoticed, particularly given his long-standing association with the Man of Steel character - an alien from another planet who was raised as an American and became a symbol of justice and hope. Social media users were quick to point out the irony, with one commenter writing, 'Superman himself would be disappointed in you, Dean.' Cain responded with a blunt retort: 'Not a chance.' This is not the first time Cain has waded into controversy in recent months. In July, he drew attention after publicly criticising James Gunn's critically and commercially successful Superman reboot, accusing the film - and Hollywood more broadly - of becoming too "woke.' Speaking to TMZ he said: "How woke is Hollywood going to make this character? How much is Disney going to change their Snow White? Why are they going to change these characters [to] exist for the times?' In our review of Superman, we wrote: "The 'silliness' of Gunn's approach feels bold in these current times – and the director knows what he's doing. He clearly understands that superhero fatigue has settled in; his reset doubles down on the fun factor without shying away from some real-world mirroring. This may not be anything new for Superman films, but the inclusion of xenophobia laced with cancel culture (aided by social media bots / monkeys) and the contentious Middle Eastern geopolitical dispute with obvious – but not overplayed - topical parallels to Russia's invasion of Ukraine and the Israel-Palestine conflict is a bold touch." We added: "You can almost hear nose-bleedingly annoying comments about Superman going 'woke' - the pithy last defence of those who never tire of shouting at clouds. But that's what Superman has always been: an alien humanitarian who fights for justice and for whom 'kindness is punk rock.'" Read our full review here.
LeMonde
30 minutes ago
- LeMonde
French foreign trade deficit widens before new tariffs take effect
Vulnerable. Extremely vulnerable. Just as the new tariffs imposed by US President Donald Trump come into force, France has found itself in a uniquely weak position in the trade war. That is what the latest foreign trade figures released on Thursday, August 7, by French customs and the Banque de France show. In the first half of the year, the value of imports of goods exceeded exports by €43 billion. After four consecutive quarters of improvement, the trade deficit began to widen again, deteriorating by €4.4 billion – an increase of more than 10% – compared to the second half of 2024. That is not all. The current account balance also raises serious concerns. This broader indicator, which, in addition to goods, includes services and income transfers between France and the rest of the world (such as cross-border salaries and dividends), plunged due to a drop in foreign investment. Slightly positive in 2024, the current account turned sharply negative in the first half of 2025, with a deficit of €17.6 billion. The main reason was income transfers, which recorded their largest deficit in over a decade.
France 24
30 minutes ago
- France 24
Germany factory output lowest since pandemic in 2020
Factory output in June fell 1.9 percent month-on-month, federal statistics agency Destatis said, steeper than a drop of 0.5 percent forecast by analysts polled by financial data firm FactSet. There were particularly heavy falls in the manufacture of machinery and pharmaceuticals, helping to drag overall factory output down to levels last seen in May 2020 during the coronavirus pandemic. Destatis also made a major revision to May industrial production data, saying the indicator fell 0.1 percent. It had previously reported a healthy rise of 1.2 percent. ING bank analyst Carsten Brzeski said the dire data could prompt a downward revision to an initial estimate showing the economy shrank slightly in the second quarter. "This is bad news," he said. "At face value, industry remains stuck in a very long bottoming out." A series of bright data releases since the start of the year had raised hopes that the worst might be over for Germany's economy. The eurozone's traditional export powerhouse shrank for the past two years, battered by high energy costs and fierce Chinese competition -- and now faces a massive extra hit from Trump's tariff blitz. A new baseline US levy of 15 percent on European Union exports took effect Thursday, with the EU among dozens of US trading partners facing higher tariffs. "It looks highly unlikely that exports could soon again be a significant growth driver for the German economy," Brzeski said. "The new tariffs will clearly weigh on economic growth." Data released Thursday also showed that German exports in June to the United States -- the country's biggest trading partner -- fell 2.1 percent, after having registered a steep decline in May. Overall exports in June rose 0.8 percent month-on-month however, Destatis said, more than the 0.5-percent increase expected in a FactSet poll of analysts.
