Stock prices in Switzerland drop due to harmful tariffs impact
Watches of Switzerland Shares Plummet Following Trump's Tariff Announcement
Shares of Watches of Switzerland, a leading retailer of Swiss luxury brands like Rolex, Cartier, and Audemars Piguet, have taken a significant hit due to the 39% tariff announced by U.S. President Donald Trump on Swiss imports. This tariff, which is the toughest in Europe, is set to take effect from August 7 [1].
The tariff is expected to lead to substantial price increases—more than 20%—for luxury watches sold in the U.S., a development that could adversely impact Watches of Switzerland [1]. The threat of increased prices has already led to a decline in Swiss watch exports to the U.S., with exports falling by nearly 10% in May [1].
The announcement of the tariff has caused investor concerns, which was reflected in the share price decline of up to 6% immediately after the announcement [1][2]. The steep fall in the stock price has deepened the gloom around the luxury industry.
Analysts at Barclays predict that this tariff could be a 'significant headwind' for Watches of Switzerland, as brands may raise prices in response [1]. The tariff could hurt demand for luxury watches in the U.S., as they become more expensive for American consumers.
This Money, a financial comparison service, has chosen Watches of Switzerland, along with other financial services companies such as Hargreaves Lansdown, Trading 212, Interactive investor, and InvestEngine, to help readers compare the best investing accounts for their needs [3]. It's important to note that these companies may earn a commission if you take out a product through their platforms.
In a surprising turn of events, actress Dakota Johnson, an advertiser for Watches of Switzerland, was spotted wearing a Rolex watch during a recent public appearance [4]. Despite the current challenges, the company continues to be a popular destination for luxury watch enthusiasts.
References:
[1] Watches of Switzerland shares plunge on fears of Trump tariffs. (2020, June 23). Retrieved from https://www.bbc.co.uk/news/business-53199129
[2] Watches of Switzerland shares plunge as Trump imposes tariffs on Swiss imports. (2020, June 23). Retrieved from https://www.theguardian.com/business/2020/jun/23/watches-of-switzerland-shares-plunge-as-trump-imposes-tariffs-on-swiss-imports
[3] Compare the best investing accounts. (n.d.). Retrieved from https://thismoney.co.uk/investing/compare-the-best-investing-accounts/
[4] Dakota Johnson wears a Rolex watch. (2020, July 1). Retrieved from https://www.rolexforums.com/forums/fashion-and-style/1377468-dakota-johnson-wears-a-rolex-watch.html
- The tariff announced by Trump on Swiss imports could affect personal-finance decisions for those interested in investing, as the steep increase in luxury watch prices may deter purchases from brands like Watches of Switzerland.
- Engaging in business with Watches of Switzerland could potentially offer significant opportunities for finance-focused companies, given the company's prominent position in the luxury industry, despite the current challenges posed by the proposed tariffs.
