Trump's tennis invite from Rolex echoes Apple, Nvidia playbook for currying favor, Warren says
Trump's tennis invite from Rolex echoes Apple, Nvidia playbook for currying favor, Warren says
Summary: Sen. Elizabeth Warren served Rolex with a critical letter on Wednesday for hosting President Donald Trump at the U.S. Open, alleging that the Swiss company could be trying to sidestep tariffs slapped on its home country.
Sen. Elizabeth Warren served Rolex with a critical letter on Wednesday for hosting President Donald Trump at the U.S. Open, alleging that the Swiss company could be trying to sidestep tariffs slapped on its home country.
The Massachusetts Democrat said that Rolex's actions mark the latest example of companies benefiting from their leaders' relationships with Trump. She said the event warrants an inquiry into "whether you are taking a page from Apple and Nvidia 's playbook."
"This invite ... raises questions about whether you are cultivating a relationship with President Trump in attempts to secure lucrative tariff exemptions for Rolex products," Warren wrote in the letter addressed to Jean-Frederic Dufour, the watchmaker's CEO, that was shared exclusively with CNBC.
Both Nvidia and Apple have announced domestic investments since Trump returned to the White House in January. Trump invited technology sector CEOs to the White House for a dinner earlier this month.
Rolex, Apple and the White House did not respond immediately to CNBC's request for comment. Nvidia declined to comment.
Warren's letter comes weeks after Trump was spotted at Rolex's midcourt box alongside Dufour during the U.S. Open men's singles championship. The president was joined by family members and high-ranking administration officials including Treasury Secretary Scott Bessent and Press Secretary Karoline Leavitt, NBC News reported .
Trump announced in August that he would place a 39% levy on Switzerland's exports — a higher rate than those faced by the European Union and United Kingdom. Bernstein analyst Luca Solca told clients that "the last minute deal that many had hoped for didn't materialize" between the U.S. and Switzerland.
Swiss watchmakers — an industry the country is known for worldwide — will likely have to hike prices as a result of Trump's tariffs, Solca said.
"Given the President's record of doling out special treatment to CEOs who are able to woo him with flattery, payoffs, or both, the timing of his attendance at the match in the Rolex box is concerning," Warren wrote. "I have questions about whether you are attempting to curry favor with the President in an effort to secure special-interest exemptions for Rolex products."
Fellow Swiss watchmaker Swatch took a different approach to the U.S. levies.
The company launched a special-edition watch model this month with the positions of the numbers three and nine swapped. Looking from left to right, the numbers together show "39."
A company spokesperson told CNBC Swatch would stop selling the watch once the U.S. changed its tariff policy toward Switzerland.
