Trump Sparks Rally in Swiss Luxury Stocks After Tariff Talks

Swiss luxury watchmakers saw a sudden jump in their share prices after U.S. President Donald Trump hinted at possible tariff relief for Swiss exports. Richemont, the maker of Cartier and Montblanc, rose 2% while Swatch shares gained 4.2% in early trading on Tuesday, reversing losses experienced after the steep import duties took effect in August.

Trump told reporters he is negotiating with Switzerland to “get their tariffs a little bit lower,” though he did not provide specific figures or a timeline for a potential deal. The current 39% tariff on Swiss exports had created immediate pressure on luxury goods firms and prompted investor concerns over reduced U.S. sales.

The announcement triggered optimism in the market, signaling that high-end Swiss watches and luxury goods may see smoother access to the U.S. market in the near future. Analysts point out that any reduction in tariffs could significantly improve profit margins for Swiss brands, which rely heavily on American consumers.

While details of the potential deal remain under wraps, investors welcomed the news as a sign of easing trade tensions, reflecting broader hopes for stability in international trade relations.