U.S. stuns Switzerland with 39% tariff but new deadline provides hope

Switzerland is officially on Friday, Friday, for the country’s national day. But many market monitors It was transferred to their offices before overnight that they were beaten at a 39 % tariff rate by the White House.

Which came as a shock to the nation Alps. The evidence in the Swiss press was that the country was about to negotiate a plan similar to the one that struck it European Unionand UK and JapanWhich put the basic definitions between 10 % and 15 %. Instead, someone received The highest rates From which country.

This is very important, as the United States represents about the sixth of Switzerland’s total exports. Corporates breathed a satisfaction mark in April when the country deviated from initial plans to obtain a 31 % tariff, as it was delivered with a temporary duty of 10 % alongside most of the world.

As of Thursday, new Termination rates on dozens of countries Which has not yet agreed on a trade -up trade order with the United States is scheduled to enter into force as of August 7. Looking at a precedent put in place by US President Donald Trump The last change in the deadline Hiring deals, this leaves room to change the situation.

Another possible decrease came as the Swiss Federal Economic Affairs Ministry told Reuters on Friday that it understood that a 39 % tariff would not include the pharmaceutical sector, which is separately Facing fluctuations from Trump’s latest comments on drug pricing. CNBC called the White House to comment.

The Federal Council in Switzerland He said It was unfortunate that despite the progress made in bilateral talks and Switzerland’s constructive position from the beginning, the United States intends to impose an additional tariff on imports from Switzerland. He added that she continued to search for “resolving negotiations” and was in contact with the American authorities.

The Swissim Manufacturing Association said that the 39 % tariff will strike the technology industry, and thus exports, and therefore the entire country is “very difficult”, noting that every second franc brought in the economy was made from foreign trade.

“I am amazed. These definitions are not dependent on a rational and arbitrary basis. This decision puts tens of thousands of jobs in the industry at risk,” said Stephen Provakir, director of the group.

Woz Whitman, Chairman and Porta Advisors, said that the news had made a “devastating” blow to the economy and Swiss companies.

“The United States is leading a unilateral warfare war on definitions, and this is the inability to predict a growing risk bonus on financial assets,” he said in the comments. “This will weaken the Swiss economy, the Swiss franc and the Swiss stock market, especially the important export sector.”

Whitman added that the Swiss government needs to realize that the time for “choosing cherry, copper and special deals” has ended, especially for the very exposed small states.

The main Swiss exports include chemical, pharmaceutical products, watches, jewelry, chocolate, gemstones and electronics.

Adrian ECONOMics said in note that the customs tariff rate of 39 % will expel about 0.6 % of GDP in Switzerland, or more with the inserts of medicines – but he expected its negotiation.

With the closing of the Swiss Securities Market for the National Day, the indicators are feeding instead through other ways such as the performance of a list in London Switzerland watchesWhich decreased nearly 9 % in morning deals.

On Friday note for customers, analysts at the company’s investment bank were martyred, along with Richmont and Swatch collectionBecause among those who will take the largest number of news, especially for previous expectations. But they added that the date of the start of August allowed “many of the last minute amendments and the changes to be agreed upon.”

Meanwhile, the Swiss franc slipped about 0.4 % against the US dollar on Friday.

This comes after a great estimate in the franc against Greenback this year, with about 11 % gains where investors hunt for safe assets. His assembly Clear the challenges to the economyWhich was in May a return to contraction for the first time since the Covid-19–which prompted the Swiss National Bank to Reducing interest rates to zero in June.

One of the elements of the deals previously neglected is a commitment to increase investment in the United States, which is in the case of the European Union He was appointed to $ 600 billion along with Hundreds of billions in additional energy purchases. In this matter, Sahal said that Switzerland was looking at the limits of an investment pledge of $ 150 billion, which was one of the largest size of its economy. He added that the country is already the sixth largest investor in the United States.

Sahal continued that it was difficult to determine what the thorny point was in the negotiations or how the rate of 39 % was calculated, noting that through both goods and services, the commercial relationship between Switzerland and the United States was balanced – but Trump was only focused on the previous.

He said: “Switzerland is a country … it includes 9 million people, and the United States has approximately 30 million people. So even if … every Swiss was drinking a bottle of Bourbon and eating a slice every day and buying Harley Davidson, we will not be able to balance trade in goods.”

– Caroline Roth from CNBC, Sophie Kidrlene and Genish Rao contributed to this story.