Johann Rupert, the local business legend, was back in the Oval Office this month. This time he was not part of an entourage of South African politicians and golfers but in a delegation of top Swiss business executives come to argue against punitive tariffs on that country’s goods.
While South Africans may not give a hoot about Swiss industries suffering at the hands of President Donald Trump, there are implications for the slew of local investors in the luxury brands conglomerate Richemont.
The Trump administration, in its infinite wisdom, slapped a hefty 39% tariff on Swiss-made goods in August. This followed on from an initial 10% tariff on Europe-made goods, which was later hiked to 15%.
As a maker of fine jewellery and top-of-the-range watches, the Rupert family-controlled Richemont has already taken an initial hit from the new tariffs. The group, at the release of interim results this week, said the impact was limited to €50m, thanks mainly to proactive inventory management since April.
As a maker of fine jewellery and top-of-the-range watches, the Rupert family-controlled Richemont has already taken an initial hit from the new tariffs
The impact in the second half will be more profound — unless the US tariff is reversed or reduced. Richemont estimates the tariff damage will be about €300m for the full year to end-March 2026. That’s a fairly significant number, and media reports that the issue should be sorted in a “day or two” were dismissed as “selective editing” by Rupert himself. Speaking to analysts, Rupert reckoned a comprehensive agreement on tariffs could take until February.
So far, the market is not fretting about trumped-up US tariffs, judging by Richemont’s sturdy share price at least. Then again, there is considerable reassurance when there’s €6.5bn of cash fortifying the balance sheet.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.