Swiss Watchmakers' Shares Surge Amid Tariff Talks

Shares of Richemont and Swatch Group increased as President Trump indicated efforts to reduce tariffs on Swiss exports to the U.S. from 39% to 15%. This development could significantly benefit the Swiss watch industry, which heavily relies on the American market.

Shares for leading Swiss watch brands, Richemont and Swatch Group, saw a significant rise following statements from U.S. President Donald Trump about potential tariff reductions. This comes after Trump's July announcement of a 39% tariff on Swiss exports, impending from August 7.

The Swiss government remained tight-lipped as reports suggested negotiations were underway to bring tariffs down to 15%. Trump indicated a willingness to negotiate but provided no specific details, prompting Swatch to withhold comments until any agreement is finalized.

The U.S., accounting for substantial portions of sales for both Swatch and Richemont, represents the largest market for Swiss watches. Experts suggest that reducing these tariffs could potentially alleviate pressure on profits and influence consumer purchasing decisions.

(With inputs from agencies.)