Post by : Badri Ariffin

Shares of prominent Swiss luxury watchmakers experienced a significant rise following remarks from U.S. President Donald Trump regarding the potential for tariff reductions on Swiss exports. In early trading on Tuesday, Richemont, known for brands like Cartier and Montblanc, increased by 2%, while Swatch's stock surged by 4.2%, reversing previous downturns attributed to the import duties implemented in August.

Trump disclosed to the press that discussions are ongoing with Switzerland to “reduce their tariffs a little bit,” without disclosing any specific figures or deadlines for an agreement. The existing 39% tariff imposed on Swiss exports has exerted immediate strains on luxury brands, raising worries about declining U.S. sales in the sector.

This announcement has injected optimism into the market, indicating that Swiss high-end watches and luxury goods could gain easier access to U.S. consumers in the foreseeable future. Analysts suggest that a reduction in tariffs could greatly enhance profit margins for these Swiss brands, which are significantly dependent on the American market.

Although specifics regarding the potential agreement remain confidential, investors have welcomed this development as a positive sign of diminishing trade tensions, mirroring a broader desire for stability in global trade relations.

#Global News #Share Market