Swiss watchmakers welcome talks with US on import tariff cuts

Shares of Swiss luxury watchmakers Richemont and Swatch Group strengthened on Tuesday in response to positive developments regarding a possible reduction in US tariffs on their products. U.S. President Donald Trump announced that he is in talks with Switzerland to adjust the 39 percent tariff the United States has been applying to Swiss exports since August.

Shares in Swatch Group, which owns the Omega, Tissot and Longines brands, rose 4.2 percent on the news. The stock of Richemont, owner of Cartier, IWC and Piaget, gained two per cent.

Trump confirmed that they are working on a deal that could bring Switzerland a lower tariff burden. The Swiss government declined to comment on speculation of a tariff cut until the deal was signed. There is talk of a general rate of 15 percent.

The United States is the largest market for Swiss watches, accounting for 19 percent of Switzerland's total exports. Analysts have described the eventual resolution of the tariff dispute as a positive signal for the entire sector.

(reuters, sie)