Richemont chairman hopeful of negotiated solution on US tariffs

Zurich - Richemont chairman Johann Rupert expressed optimism for a negotiated solution regarding US tariffs on Swiss goods. He stated on Wednesday that the luxury group remains "well-positioned" for the long term.

"I am in contact with the Swiss government and the heads of the negotiations in the US", Rupert said at the annual general meeting in Geneva. "I am quite confident that we will find a solution."

In August, Switzerland was hit with 39 percent tariffs imposed by the White House, up from 31 percent initially announced in early April. Swiss president Karin Keller-Sutter, who is also the finance minister, and economics minister Guy Parmelin, travelled to Washington to try to sway the US position, but to no avail.

Parmelin returned to Washington last week to meet with commerce secretary Howard Lutnick, treasury secretary Janet Yellen, and US trade representative Jamieson Greer. Parmelin described the discussions as "constructive", but did not provide further details.

The 39 percent tariffs are a blow to the Swiss watchmaking industry. Watches must be produced in Switzerland to bear the "Swiss Made" label, a symbol of Swiss watchmaking tradition.

With uncertainty surrounding the tariffs, it is impossible to "make a six-month prediction" or even "a three-month prediction", Rupert said at the general meeting.

"But we will get there," said the South African billionaire, who founded Richemont in 1988. The group has weathered other difficult periods, such as the Covid-19 pandemic and the shock of the war in Ukraine, he noted. He believes the group remains in a "good position" for the long term.

During its fiscal year 2024/2025 (ending in March), the group, which owns Cartier, saw its revenue grow by 4 percent to nearly 21.4 billion euros. Jewellery sales helped offset the drop in demand for watches in China.

Luxury jewellery is more resilient to economic fluctuations than other luxury products as it caters to a very wealthy clientele.

This article was translated to English using an AI tool.

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