The Swatch carrier finished decreasing from 2.3% to 141.60 francs and the Title Richemont lost 1.3% to 131.70 francs.
The Swatch and Richemont titles paid the price on the Swiss Stock Exposition in the United States on Monday, but more moderate than expected, after the announcement by Donald Trump of customs duties at 39% for Switzerland. If market observers are very worried about the watchmaking industry, they want to believe in a negotiation margin with the American president.
At the end of the Swiss Stock Exchange, the SWATCH carrier finished decreasing 2.3% to 141.60 francs and the title Richemont lost 1.3% to 131.70 francs. By way of reference, the SMI dropped 0.15%.
John Plassard, head of the Cité Management investment strategy, worried upcoming price increases for the sector in his daily comment: “Some watchmaking brands have already raised their 5% to 7% tariffs with the 10% of existing rights, imagine the impact with 39%!”
But the economists of the Oddo BHF bank, who believe in a decrease in customs duties after negotiations with the Trump administration, estimated that these price increases “will limit any damage”.
In the eyes of Swissquote analyst Ipek Ozkardeskaya also, it is the American consumers who will end up paying the major part of the customs duties. However, “to appease Trump’s obsession for the deficit, they may have to reduce their consumption, in particular imports,” she warns.
“The data published in the coming months will be extremely interesting to observe, but it could also be presented to give a more favorable image of the American economy than it is actually,” she said.
“Stay calm”
The Swatch group, which had announced in July to the AWP agency having already enhanced its prices by around 5%, reacted Sunday to the new customs duties of 39%, without wanting to reveal if it was going to continue to go in this direction.
“No hasty reactions, negativism or speculation, and especially no hyperventilation … especially on the part of journalists. Stay calm, “said the spokesperson, interviewed by AWP.
The majority of experts are of the opinion that customs duties will decrease and will not definitively be up to 39%. “There is a certain hope of achieving an agreement on American customs duties for Switzerland, which could bring the level of customs duties closer to the 15% reference base for other countries,” advances for example Jean-Philippe Bertschy de Vontobel.
