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Mint
13 minutes ago
- Mint
Travelling to Switzerland? Shopping may cost more as Donald Trump imposes 39% tariff
Prices for the eponymous Swiss watches, Swiss chocolate and Swiss cheese could skyrocket in a week as a result of US President Donald Trump's trade war. Switzerland, home to some the world's most recognisable luxury brands, now faces an upcoming 39 per cent tariff from the US Industry groups on Friday warned that both Swiss companies and American consumers could pay the price. Trump signed an executive order Thursday placing tariffs on many US trade partners — the next step in his trade agenda that will test the global economy and alliances — that's set to take effect next Thursday. The order applies to 66 countries, the European Union, Taiwan and the Falkland Islands. In Switzerland, officials failed to reach a final agreement with the US after Trump initially threatened a 31 per cent tariff in April. Swiss companies will now have one of the steepest export duties — only Laos, Myanmar and Syria had higher figures, at 40-41 per cent. The 27-member EU bloc and Britain, meanwhile, negotiated 15 per cent and 10 per cent tariffs, respectively. The Swiss government spent Friday — the country's National Day — reeling from the news. Swiss President Karin Keller-Sutter said that the 39 per cent figure was a surprise, because negotiators had hashed out a deal last month with the Trump administration that apparently wasn't approved by the American leader himself. 'We will now analyze the situation and try to find a solution," Keller-Sutter told reporters. 'I can't say what the outcome will be, but it will certainly damage the economy.' The US goods trade deficit with Switzerland was USD 38.5 billion last year, a 56.9 per cent increase over 2023, according to the Office of the United States Trade Representative. Keller-Sutter said that she believes Trump ultimately chose the 39 per cent tariff, because the figure rounded up from the USD 38.5 billion goods trade deficit. 'It was clear that the president was focused on the trade deficit and only this issue,' she said. For Swiss watch companies, whose products already come with price tags in the tens of thousands — if not the hundreds of thousands — of euros, a timepiece for an arm could cost a leg, too, come next week. The 39 per cent figure was especially galling to the Federation of the Swiss Watch Industry, because Switzerland in 2024 got rid of import tariffs on all industrial goods. 'As Switzerland has eliminated all custom duties on imported industrial products, there is no problem with reciprocity between Switzerland and the US,' the federation said in a statement. 'The tariffs constitute a severe problem for our bilateral relations.' Swiss watch exports were already facing a prolonged slowdown, with significant declines in the United States, Japan and Hong Kong, according to the federation's June figures, the most recent available. Swatch and Rolex declined to comment Friday. Representatives for Patek Philippe, IWC and Breitling didn't respond to requests for comment. Multinational chocolatiers Nestlé and Lindt & Sprüngli said they have production lines in the US for American customers. But small- and medium-sized Swiss companies are predicted to suffer under the tariffs. Roger Wehrli, chief executive of the Association of Swiss Chocolate Manufacturers. also known as Chocosuisse, said Switzerland exports 7 per cent of its chocolate production to the US. It's not just the 39 per cent tariff that's the issue. Once the manufacturers factor in the exchange rate between US dollars and Swiss francs (USD1 to 1.23 francs on Friday), Wehrli said, it's close to a 50 per cent increase in costs for the Swiss companies. And that's a big number to pass on to American consumers, if the already-slim margins aren't further reduced. 'I expect that our industry will lose customers in the United States, and that sales volumes will decrease heavily,' he told The Associated Press. Wehrli said that he wants Swiss chocolatiers to sell to other markets around the globe to make up the difference. Still, he hopes American customers remember that Swiss quality beats cheaper quantity. 'I think even if prices for Swiss chocolate increase due to the very high tariffs, I think it's worth (it) to buy Swiss chocolate," he said. 'It's worth (it) to really eat it consciously and to really enjoy it instead of eating a lot.' Swiss pharmaceuticals powerhouse Roche says that it's working to ensure its patients and customers worldwide have access to their medications and diagnostics amid the Trump tariff war. 'While we believe pharmaceuticals and diagnostics should be exempt from tariffs to protect patient access, supply chains and ultimately future innovation, we are prepared for potential tariffs being implemented and confident in managing any impacts,' the statement said. The company in April announced that it plans to invest $50 billion in the United States over the next five years, creating 12,000 jobs. The company already employs more than 25,000 people in the US. Meanwhile, Novartis, another major Swiss pharmaceutical firm, said in a statement that it was reviewing Trump's executive order. 'We remain committed to finding ways to improve access and affordability for patients,' it said.
Hindustan Times
16 minutes ago
- Hindustan Times
Trump tariffs to hit less than half of India's exports, here's what is exempted
Even though US President Donald Trump's 25 per cent tariff announcement on Indian imports has raised an alarm, it stands to impact less than half of what India exports. Pharmaceuticals are among the categories reportedly exempted from bearing the brunt of Donald Trump's 25 per cent tariffs(AFP) According to news agency PTI, much of India's important export products like pharmaceutical, critical minerals and electronic devices remain exempted from the tariffs. "More than half of India's exports to the US will not be impacted by the duty. Due to the Section 232 exemption of the US, only exports worth about USD 48 billion would be impacted with these tariffs," PTI quoted its sources as saying. The exempted items would reportedly also include medicines, energy products like crude oil, fuels, natural gas, coal, and electricity, as well as key minerals and a wide range of electronics and semiconductors such as computers, tablets, smartphones, and display screens. Besides, even though Trump announced a penalty for India apart from the 25 per cent tariffs, citing India's purchase of oil and military equipment from Russia, there are no specifics to this end yet. Exports to be impacted by 25% tariffs While more than half of India's exports to the US would reportedly remain unaffected by the tariffs, there still are some sectors that stand to bear the brunt. These include textiles (10.3 billion), gems and jewellery (12 billion), shrimp (USD 2.24 billion), leather and footwear (USD 1.18 billion), animal products (USD 2 billion), chemicals (2.34 billion), and electrical and mechanical machinery (about USD 9 billion). Among these, shrimp exporters, which account for nearly 48% of their total exports, now face a challenge in the US market, said Crisil Ratings Senior Director Rahul Guha. These sectors have urged the government to intervene in the matter. What next for India-US trade ties? Donald Trump signed executive orders on Friday, imposing reciprocal tariffs between 10% and 41% on different trading partners. As announced a 25 per cent tariff was announced on imports from India. However, this may not be the end of the road as negotiations on trade between India and the US are still underway, and India reportedly not willing to compromise on agricultural, daily and genetically modified (GM) products. Both sides are looking to reach a bilateral trade agreement (BTA), and want to conclude the first phase of the pact before the year ends. With PTI inputs
Mint
16 minutes ago
- Mint
Novo Nordisk Shares Post Worst Ever Week as Optimism Wanes
(Bloomberg) -- Just six weeks ago, things seemed to be getting better for Novo Nordisk A/S. Investors were optimistic, and the Danish drugmaker was briefly Europe's most valuable public company again. Now, the stock has posted its worst week on record. The shares have plunged 32% this week after the maker of Ozempic and Wegovy cut its forecasts for the year and named a company insider as its new chief executive officer. The stock was also hit on Friday after US President Donald Trump demanded that pharmaceutical companies lower American drug prices. That's taken Novo's market capitalization to the equivalent of $213 billion — below companies including Nestle SA and AstraZeneca Plc. The Danish firm dropped out of Europe's top 10 most valuable stocks on Friday morning, before regaining the final slot in that list later in the day. 'We've long been calling Novo a 'show me' story,' Barclays Plc analyst Emily Field wrote in a note this week. But with Novo having a hard time competing with cheaper, copycat versions of its medicines, and a new drug pipeline that lags behind rivals, 'we struggle to see what will get investors to return' to the story, Field wrote, downgrading the stock to equal-weight from overweight. Novo's warning on Tuesday followed a tumultuous year that's seen the shares plunge 70% from last summer's record high. Issues have included disappointing clinical trial results for experimental drugs, mounting competition from Eli Lilly & Co. and the ouster of its former CEO. Novo named company veteran Maziar Mike Doustdar as its new leader this week, 'but this won't be an easy fix,' warned Barclays' Field. Novo is due to report second-quarter results on Wednesday. One area that has been a particular headache for Novo is competition from cheaper copycat options for US patients. Compounding pharmacies are allowed to make and sell cheaper copies of a medicine when brand-name drugs are in short supply, and although they lost this permission this year, it remains an issue. Novo blamed its guidance cut on unrepentant compounders and broader competition. Many investors and analysts were caught off guard by the warning, with the mood in June being mainly one of optimism that a turnaround was starting. On Monday, nearly two-thirds of analysts tracked by Bloomberg rated the stock a buy or equivalent. But caution is starting to seep in, with less than half keeping their buy recommendations as of Friday's market close. Read: Novo Nordisk Shares Are Now Recovering from Peak Pessimism 'We got our call on Novo wrong,' said Rajesh Kumar, an analyst at HSBC. 'Our assumption that with FDA's ban on compounding, Novo might regain market share has not played out,' he wrote in a note on Thursday, cutting the stock to hold from buy. Still, one investor sees similarities between Novo's current situation and another upheaval for the drugmaker in 2016 when it was better known as the world's biggest maker of insulin. Will James, a fund manager at Guinness Global Investors, notes that back then, the company had its competitive position questioned. The guidance was cut and the CEO replaced. 'The share price fell and then recovered aggressively as Novo refocused its innovation and commercial efforts,' James said in an email. 'It is now undoubtedly a bigger job for the new CEO with a sizeable mountain to climb to regain and grow market share and rebuild trust with investors.' --With assistance from Michael Msika, Sagarika Jaisinghani and Blaise Robinson. More stories like this are available on
