Switzerland and the US tariffs: Trump has a good laugh

Donald Trump is the first US president to declare himself Guest of the Official Timekeeper – currently Rolex – the final of the US Open at Flushing Meadows. And at least for a time, he had a lot of fun, despite the clearly audible boos from the audience because of the delays caused by his presence.

Other people in the Rolex Lounge laughed with him, presumably including Rolex CEO Jean Frédéric Dufour. He revealed this in his response to the Letter from US Senator Elizabeth Warren, which was obtained and published by CNBC.

The Democrat asks him whether he would use his relationship with President Trump “to obtain lucrative tariff exemptions for Rolex products.”

In Dufour's reply, which Warren has now published on Platform X, the Swiss citizen explicitly denies this: "There were no substantive discussions on tariffs, trade policy, or other official matters."

In his reply, he explained the invitation as follows: "Rolex has long been a proud sponsor of the US Open and is committed to sporting success and international friendship. Invitations of this kind are based on long-standing tradition and in the spirit of bipartisan commitment and respect."

It could have been left at that. But Jean Frédéric Dufour didn't.

Instead, the following – and somewhat irritating – passage can be found in his letter to the Senator:

"President Trump, never one to miss a rhetorical opportunity, jokingly asked if he would have been invited without the tariffs—a moment that sparked widespread laughter and, as one might imagine, quickly redirected attention to the unfolding excitement in the square."

One wonders: What's so funny about that? A 39 percent tariff could break the neck of many a Swiss company in one of the country's export sectors. One further wonders: Why is Dufour even reporting this dubious anecdote? Rolex is actually the epitome of secrecy.

Or does Rolex know more? This question, in turn, is raised by Rob Corder of WatchPro. Unlike, for example, Patek Philippe, whose watches have been priced 15 percent higher in the US since mid-September, Rolex has not yet implemented any price increases in line with the 39 percent tariff. Nor are there any rumors about them.

Other Swiss watch companies, such as Richemont and the Swatch Group, are also raising prices or have already done so. Margin cuts for retailers are also among the measures. Meanwhile, official negotiations between the US and Switzerland have stalled at the political level.

"We've made some good progress recently. Negotiations are ongoing, but I have no hope of a quick conclusion," Rahul Sahgal, executive director of the Swiss-American Chamber of Commerce, is quoted as saying by the Financial Times.