Overview

• President Donald Trump announced a 39% tariff on Swiss luxury watches, jewellery, cheese and chocolate, effective August 7
• The levy far exceeds the 15% duty on EU goods and the 10% rate for Australian products, placing Swiss exporters at a steep disadvantage
• Shares of Watches of Switzerland plunged 6.8% after the announcement, and Barclays analysts warned brands will likely raise US prices to absorb the added costs
• Swiss President Karin Keller-Sutter described the rate as a surprise and vowed to analyse its impact and pursue solutions
• Exporters like Lindt & Sprüngli plan to shift more production to overseas sites, such as its New Hampshire factory, to shield goods from the new duties