When trade turns bitter with tariffs, Swiss chocolate maker Lindt knows how to sweeten its strategy. Meanwhile, Swiss watchmaker Swatch wittily responds to the 39% U.S. tariff with a “WHAT IF...TARIFFS?” watch.

In today’s sub-chapter:

Lindt & Sprungli, maker of the gold-wrapped chocolate bunnies and Santas, is facing a new ingredient in its U.S. recipe: bitter tariffs. 

Chocolates from Lindt’s German factories face a 15% tariff under President Trump’s levy on EU goods. Even bitter is the 39% tariff on Swiss imports, including Lindor bars made exclusively in Switzerland.

Bloomberg reports Lindt may consider shifting production of hollow chocolates to the U.S., with a potential $10 million expansion in Stratham, New Hampshire. The company, however, says most U.S. products are already made in Stratham, and European imports account for only a small share.

Instead, Lindt is focusing on production and supply chain efficiency, regularly reviewing manufacturing and distribution. Also, despite higher costs, it has no plans to change recipes or ingredients.

Meanwhile, in Canada, Lindt is adapting to retaliatory tariffs on U.S. goods by exploring direct sourcing from Europe and increasing local inventory to reduce risk.

Through careful expansion, regional production, and supply chain flexibility, Lindt is sweetening its chances of thriving in a bitter, tariff-heavy era.

Chapter 49 Tidbit: It appears that Lindt’s tariff classifications have changed over time. In 1990, chocolates were under codes 1704.90.4010 and 1704.90.4090 with a 17.5% duty. In 2004, they updated to 1806.31, 1806.32, and 1806.90, lowering duties to 5–6%. Since 2020, classifications shifted to 1806.20 (dark chocolate), 1806.20.3400 (milk chocolate within quota), and 1704.90 (white chocolate within quota), moving from retail candy to industrial couverture products.

Note: This information is from publicly available customs rulings and does not reflect Lindt’s private account details.

Swiss watchmaker Swatch has created a special watch called the “WHAT IF...TARIFFS?” to respond to the 39% tariff the U.S. imposed on Swiss goods. The watch’s face swaps the numbers 3 and 9, referring to the 39% tariff. Swatch says the watch is meant to encourage the Swiss government to get a better deal with the U.S. They will stop selling the watch as soon as the tariffs are removed.

It costs 139 Swiss francs (~$175) and is available only at Swiss Swatch boutiques and online in Switzerland. Swatch has a product page, but no option to order for other countries.

⚖️ Supreme Court to Hear Trump Tariffs on Fast Track. The Supreme Court will fast-track hearing Trump’s appeal on tariffs imposed under the International Emergency Economic Powers Act. The case raises whether the president can impose wide tariffs without Congress’s approval. Oral arguments are set for early November.

⚠️ China Warns Mexico to "Think Twice" Before Raising Tariffs: China cautions Mexico against increasing tariffs on Chinese imports, viewing it as yielding to U.S. pressure. Mexico plans to implement up to 50% duties on Chinese cars and over 1,400 other product categories in 2026 as part of a major tariff reform. China threatens retaliation but urges cautious diplomacy.

🤝 U.S.–Japan Trade Deal Now Effective. As of September 16, 2025, the U.S.–Japan Trade Deal imposes a 15% baseline tariff on most Japanese imports, with exemptions for key sectors. Japan pledges $550 billion to U.S. industry and jobs. CBP issued updated guidance on tariffs, exemptions, and refund procedures.

In our previous edition, we covered the court ruling against Trump’s tariffs. Now, the Supreme Court will fast-track the case and decide the final fate of these tariffs. What will happen if the court strikes them down and Trump loses the tariffs?

Find out in this short video!

De minimis ended last August 29, 2025. If you’ve been wondering what this means day-to-day, CBP’s EAC Susan S. Thomas breaks it down in CBP’s latest Talking Trade Video.

See the full message!

In 2025, uncertainty costs as much as tariffs, if not more.

According to UNCTAD’s September 2025 report, shifts in U.S. trade policy send ripple effects across global supply chains, hitting partners most tied to U.S. manufacturing. Canada, the United Kingdom, and the European Union are the most exposed, while major Asian exporters like China, India, and Japan also feel the pressure.

This exposure means even the smallest U.S. policy changes can act as hidden tariffs, which can raise costs, disrupt suppliers, and slow growth worldwide.

In the State of the European Union 2025, President Ursula von der Leyen highlights Europe’s €500B trade with the U.S. and growing global partnerships, including a potential deal with India.

See her message!

Tariff cartoon by Tom Fishburne, the David Ogilvy of cartooning 😆