Switzerland is continuing discussions with the US about reducing potentially crippling import duties, its government said on Friday, as the country’s gold industry warned exports of gold bars to the US could be severely impacted by a 39% tariff.
Gold bars are pictured at the plant of gold and silver refiner and bar manufacturer Argor-Heraeus in Mendrisio, Switzerland, July 13, 2022 – REUTERS /Denis Balibouse/File photo
The tariff talks in Washington are being led by Helene Budliger Artieda, head of the State Secretariat for Economic Affairs (SECO), and come after the import levy- among the highest of any applied under President Donald Trump‘s global trade reset- took effect on Thursday. A last-ditch Swiss trip led by President Karin Keller-Sutter failed to produce a better deal.
“Discussions with the United States are ongoing,” SECO said in a statement to Reuters on Friday. “The discussions have consistently focused on reducing the additional US tariffs.”
SECO said it would give no further details on the talks, which could include further concessions Switzerland may offer the US in return for lower tariffs. No discussions were scheduled for Friday, although they are due to continue next week on a technical level, a Swiss source said, without giving further details.
The Swiss precious metals association on Friday said it was concerned about an increase in tariffs on gold exports to the US to 39%. Gold bars of 1 kg and 100 oz were previously exempt from US tariffs, but country-specific tariffs may now apply.
Switzerland is the world’s largest gold refining centre, with up to 70% of gold produced annually worldwide melted down and processed at the five refineries in the country. The country imports gold bars and resizes them for the US market. Switzerland exported gold bars worth 7.86 billion Swiss francs ($9.7 billion) to the US last year, according to customs data.
“We are particularly concerned about the implications of the tariffs for the gold industry and the physical exchange of gold with the US, a long-standing and historical partner for Switzerland,” said Christoph Wild, president of the Swiss Association of Manufacturers and Traders in Precious Metals. “With a tariff of 39%, exports of gold bars will definitely be stopped to the US,” Wild told Reuters.
Economist Hans Gersbach, from the KOF Economic Institute at ETH, a university in Zurich, estimated that 7,500 to 15,000 jobs could be lost in Switzerland as a result of the US tariffs.
“The effect will be severe in some industries like watches, machinery and precision instruments,” Gersbach said. “If pharma was also targeted, the figure would be higher,” he added, although no figure has yet been calculated.
Switzerland’s giant pharmaceuticals sector, which includes Roche and Novartis, made up half of Swiss exports to the US last year, and has not been included in the US tariffs. Business association Economiesuisse held a seminar earlier this week to help companies navigate the tariff turmoil. Companies were very concerned, but were focused on trying to find solutions, said Economiesuisse board member Jan Atteslander.
“We still have difficulties understanding this friendly fire, but we are working on ways to cope with it,” Atteslander said. US importers would increase their prices for Swiss products to deal with the tariff impact, Atteslander said, which could lead to lower sales, while profit margins would also be cut.
Companies were speaking with their US customers as well as examining shifting their production from Switzerland to Europe or Britain, which have lower tariffs on US-bound products. The crisis is the latest shock to hit Swiss companies, which have long battled an appreciating Swiss franc, which makes its products more expensive abroad, said Atteslander.
“Our companies are always under heavy pressure, so the only way to survive is to innovate,” he said.
Lululemon Athletica’s CEO shake-up has put the spotlight on the once-dominant yoga pants maker’s race to wrest back younger and affluent shoppers from rivals and revive its sagging U.S. business.
Calvin McDonald – Reuters
Its shares, which have halved in value this year, rose 10% on Friday following the departure of CEO Calvin McDonald after about seven years in the role.
An athleisure pioneer known for its premium yoga apparel, Lululemon lost ground as newer rivals such as Alo Yoga and Vuori weaned away its core younger shoppers with trendier styles, marketing campaigns and celebrity partnerships.
Meanwhile, established players like Nike and Gap also entered the market with lower-priced styles.
Lululemon “caught the perfect wave in fashion, becoming the trend for the last five years,” said Brian Mulberry, senior client portfolio manager at Zacks Investment Management.
“But as its core customers graduate college and face tighter budgets, affordability is a challenge and a new outfit at Lulu can cost as much as a month’s groceries.”
Lululemon sells a range of yoga, running and training apparel such as Align yoga pants priced at $108 and men’s joggers at $128.
The slow refresh to core styles and product missteps, such as its decision to pull its $98 “Breezethrough” leggings from shelves last year, have led to heavy discounting to clear aged inventory.
At an earnings call late on Thursday, company executives said the board is “focused on a leader with experience and growth and transformation”.
“It’s understandable to think that a strategic overhaul with a new leader at the helm will be a positive, but this opens the door to more questions as to what direction the board will go with a replacement,” said Jay Woods, chief market strategist at Freedom Capital Markets.
Lululemon is the latest global consumer company facing leadership churn as macroeconomic uncertainty fuels increasingly divergent spending patterns.
Lululemon is making efforts to speed up product development, launch fresh styles and drive company-wide efficiencies to offset cost inflation and protect margins.
The company beat third-quarter results, lifted by strong China sales, but issued a weaker-than-expected holiday forecast as higher promotions and increased spending on marketing weigh on margins.
Founder Chip Wilson, who is also Lululemon’s largest independent shareholder, in a statement on Friday slammed the board for “poor succession planning” and value erosion.
He called for an urgent CEO search led by new, independent directors with deep company knowledge to restore a product-first focus. Lululemon did not immediately respond to a Reuters request for comment on Wilson’s statement.
The company’s forward price-to-earnings multiple, a common benchmark for valuing stocks, is 14.66, compared to 31.26 for Nike and Abercrombie & Fitch‘s ratio of 10.8, according to LSEG data.
“The main challenge I foresee for the new leadership is not how consumers see Lulu, but how does it see itself?” said Mulberry.
Ferragamo appoints Alberto Tomba as a brand ambassador. The collaboration with the Italian skiing legend celebrates values shared by the Florentine fashion house: dedication, perseverance, resilience and attention to detail.
Alberto Tomba
Born in 1966, Tomba is the quintessential emblem of an Italy that invests in talent, commitment and the ability to push beyond one’s limits. His career is marked by major international successes, including three Olympic gold medals and two silver medals, two World Championship gold medals and two bronze medals, and 50 World Cup victories.
The Bologna-born skier is also the only athlete to have won races in 11 consecutive seasons (1987-1998) and to have claimed four World Cup discipline titles in giant slalom and four in slalom.
“Tomba’s sporting journey perfectly reflects Ferragamo’s philosophy: every achievement comes from sacrifice, every result from dedication. We share with him a deep sense of authenticity and a love of excellence, values that continue to inspire our daily work,” said Leonardo Ferragamo.
“Being chosen by Ferragamo is an honour,” Tomba commented. “I have always believed that sport and style share a common language: that of passion, rigour and the desire to improve every day. Representing a brand that embodies all this, and that brings Italian beauty and craftsmanship to the world, is a source of great pride.”
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New York–based fashion brand Guizio is expanding its retail footprint with the opening of its second store, at Aventura Mall in Miami, this month.
Guizio expands retail footprint with Miami store opening. – Guizio
Designed in collaboration with Brandi Howe, the new Miami store reflects the brand’s refined aesthetic and contemporary edge, while introducing elements inspired by Miami’s vibrant energy.
It opens with a robust assortment of womenswear, along with an exclusive, limited-edition Puma sneaker available only at the Miami location.
“Opening a Guizio store in Aventura Mall is such a special moment for me,” said Danielle Guizio, founder and designer. “It allows us to connect with our community here and share the brand’s energy in a new way. Bringing our world to Miami felt like a natural next step in growing Guizio, and we’re so excited for what’s ahead.”
Guizio founded her namesake womenswear label in 2014 and continues to offer ready-to-wear collections that celebrate the modern-day woman.
Through her collections, woven knits, structured suiting, and signature corsets are emboldened with asymmetrical details, purposeful cut-outs, ruching and custom hardware. The label has become a favorite among talent such as Sabrina Carpenter, Olivia Rodrigo, Rosalia, and more.
The opening follows the success of the brand’s SoHo flagship in New York, which opened in September 2024.
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