Swatch Group CEO concerned by Swiss franc but confident of tariff refund
Swatch Group CEO Nick Hayek has expressed his ongoing concern about the strength of the Swiss franc relative to other major currencies.
The franc has been hitting 11-year highs against the euro recently, and a weak US dollar has exacerbated the issue further.
Speaking to Swiss website SRF, Hayek said: “We have nothing against a strong Swiss franc, but its current strength against all currencies is so excessive that it’s becoming impossible to continue manufacturing industrial products in this country.
“My concern is that the Swiss National Bank (SNB) isn’t recognising the problem,” he added. “It’s remaining silent, fearing that Donald Trump might see it as a currency manipulator and punish it with higher tariffs.
“When industry struggles, the whole country suffers. It’s about the social fabric: apprentices, factories, the know-how to manufacture a product in Switzerland. I don’t want to do without that,” he continued.
Hayek also expressed his confidence that he would be able to recoup most of the money that Swatch Group paid in inflated US tariffs last year before the rate was brought down.
“Our branches in America are already working on it, together with our lawyers,” he said. “In the end, we’re talking about refunds in the tens of millions, and the chances are good that we’ll get it back.”
