Watchmakers shine in Zurich after US tariffs cleared, Swatch and Richemont sprint
Switzerland may be close to getting a truce on tariffs in the wake of a visit by some business leaders to the president, which helped thaw relations
(Il Sole 24 Ore Radiocor) - Watchmakers are shining on the Zurich Stock Exchange thanks to the brightening on the front of the heavy US tariffs that are sinking exports to the US market. Swatch closed up 6.21% and Richemont up 1.17%. US President Donald Trump said on Monday that he is working with Switzerland on a deal to reduce tariffs by 39% on Swiss exports.
"We are working on an arrangement to reduce their tariffs a bit, Trump said, during a meeting with the press in the Oval Office. "I have not decided on any numbers, but we will work to find a solution that helps Switzerland," the president added. On Sunday, the Blick newspaper reported that Switzerland may be close to getting a reprieve from US-imposed tariffs in the wake of a visit by some business leaders to the president, which helped thaw relations. Not least because - some commentators have noted - Swiss executives have been showering Trump with lavish regalia.
A letter of intent to break the trade impasse is expected in the coming weeks, the newspaper said, without citing sources, before a deal is presented at the World Economic Forum in Davos in January. If all goes as planned, Trump and Swiss President Guy Parmelin, who will also be Economy Minister, will present a plan for US import tariffs comparable to the 15% tariffs that Washington has already agreed with the European Union. The Swiss Ministry of Economic Affairs would not comment on the rumours.
Also according to Blick, executives presented Trump with a watch and a gold bar provided by Marwan Shakarchi, CEO of the Swiss gold refinery Mks Pamp. The watch would be the gold-plated desk clock that actually appeared on Trump's desk, made by Rolex (the ceo was present at the meeting) and according to a Hodinkee article, was not given to the president, but to the 'people of the United States'. The Swiss delegation also included executives from Msc, Partners Group, Mercuria and Richemont. The Swiss mission, described as informal, had been organised after a disastrous first telephone approach between Federal President Karin Keller-Sutter and Trump.
