On a busy Friday in Washington, Wall Street and elsewhere, the United States signed a landmark trade agreement with Switzerland and announced new tariffs on imports of key foods. Walmart also faced a highly publicized leadership transition, while President Trump called for new inquiries into Jeffrey Epstein’s connections.
The Federal Reserve also postponed an important report on industrial production as the agencies resumed operations after the longest government shutdown in history.
Tariffs reduced after business diplomacy in the US-Switzerland agreement
The US and Switzerland have reached an agreement after months of increasing trade tensions. They will reduce the tariffs on Swiss products from 39% to only 15%.
This decision represents a drastic reversal of fortunes for Swiss exporters who have seen their shipments to US drop by 14% over the past three months.
This deal was reached after a meeting between a Swiss delegation and President Trump in the White House. The group included top executives such as Rolex CEO Jean-Frederic Dufour, Richemont chairman Johann Rupert and Richemont’s Chairman Jean-Frederic Dufour.
US Trade Representative Jamieson Greer announced that Swiss watchmakers and pharmaceutical companies, as well as gold refiners, will be given substantial relief. Switzerland also pledged to invest $200 billion dollars in the US.
The Swiss watch industry–responsible for the country’s most recognizable exports–had been among the hardest hit.
Luxury brands such as Breitling Omega, Rolex and Patek Phillipe were forced to increase prices or postpone shipments.
The tariff cut provides a crucial breather and brings Swiss watches competitive with EU prices.
The pharmaceutical and gold refining industries will also benefit, as Novartis or Roche are now able to price their exports with no tariff penalties.
Trump reduces tariffs on imports of key foods
Bloomberg reported that President Trump was also preparing an Executive Order to lower tariffs for a variety of food imports, including beef, coffee, bananas, tomatoes and other consumer foods.
This move is a response to voter anger over the high cost of groceries and represents a significant shift in policy for an administration which has always favored tariffs.
Although the White House does not yet have a complete list of products affected, the focus is expected to be on those commodities that the US can’t produce in enough quantities.
Officials from the administration said that the move is in line with President Obama’s policy of adjusting tariffs to supply conditions. This, despite the fact that previous tariffs have led to increased import costs.
Analysts see stability, markets react to Walmart’s new CEO
Walmart’s shares fell after Doug McMillon, the long-time CEO of Walmart, announced his retirement in January.
John Furner will be the new US Chief of the Company. He is a 30 year veteran.
Stacey Widlitz of SW Retail Advisors, among others, said that although investors initially showed caution, the overall effect is positive.
Furner’s deep operational experience–particularly in the US segment that accounts for about 70% of company revenue–positions him to maintain Walmart’s momentum.
Recent performance has been driven by his success in increasing traffic and attracting shoppers with higher incomes.
Trump asks DOJ for investigation of Epstein Associates
The President said that he would ask Justice Department and FBI investigators to look into Jeffrey Epstein’s connections to financial and political institutions and prominent Democrats.
Ses comments come as a result of renewed political discussion, just before the House votes on whether to release additional Epstein documents.
Oversight Committee already released more than 20,000 documents from Epstein’s estate. These show extensive communication with business and political leaders.
Trump denied any wrongdoing, and claimed that he severed ties with Epstein back in the early 2000s.
The federal authorities concluded that they did not find any evidence to warrant an investigation of uncharged parties.
Fed delays industrial production report due to shutdown disruptions
Federal Reserve has announced that it will postpone the original November 18 release date of data on industrial production and capability utilization.
It cited the missing data as a result of the government shutdown, which was one of America’s longest ever. The end to this shut down allowed all agencies to resume normal operation.
Once the full set of data has been released, The Fed will announce an updated publication date. This adds another level of uncertainty to analysts who are monitoring US manufacturing activity.
The ICD published the following article: US digest: Trump reduces tariffs on food imports, US-Switzerland Trade Deal.
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