Johann Rupert, the chairman of luxury group Richemont, has expressed optimism about the swift resolution of the tariffs imposed by the U.S. on Swiss exports.
Rupert Expects Swift Tariff Rollback
Rupert, who is also the owner of luxury watch brand Cartier, anticipates a prompt reduction in the tariffs, which have been a cause of concern for the Swiss economy.
Richemont outperformed sales expectations in Q2, with the Americas driving growth despite tariff pressures. During its earnings update on Friday, Rupert said that the “misunderstanding” appeared to have been cleared up and that he expected the issue to be resolved as early as this week, reported the Financial Times. He also described the tariffs as “potentially devastating for the whole of Switzerland.”
Swiss Trade Deal On The Cards?
According to a Reuters report on Friday, Switzerland may reach a deal with the U.S. as early as this week or next to cut U.S. tariffs on Swiss goods to 15%, though it still requires President Trump’s approval. Swiss Economy Minister Guy Parmelin has been in frequent contact with U.S. officials, including Trade Representative Jamieson Greer, and recently described their talks as “very constructive.”
Earlier this week, President Donald Trump told reporters in Oval office that the administration is working on something to “help Switzerland” and get the tariffs lower.
Rupert, along with other Swiss billionaires, visited the White House, last week, as per Fortune, to convey the detrimental impact of the tariffs. The group hopes for a reduction to 15%. Although no negotiations took place, Rupert believes the Swiss government representatives are handling the situation well.
See Also: Bitcoin Crashes To $98,000 As Ethereum, Dogecoin Plunge On ‘Sell-The-News’ Panic
Tariffs Posed A Threat To Swiss GDP
The Trump administration imposed a 39% tariff on Swiss imports in August, citing a $39 billion trade deficit with Switzerland. This was the highest tariff imposed on any developed economy.
The imposition of tariffs on Swiss exports has been a contentious issue, with various stakeholders expressing concerns. Notably, Kevin O’Leary, the investor and “Shark Tank” star, criticized the tariffs for negatively impacting American consumers and collectors.
In response, companies like Swatch Group announced price hikes of 5% to 15% for its products in the United States to offset the tariffs in September.
READ NEXT:
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.