Swiss tensions run high as clock ticks on U.S. tariff deadline
US President Donald Trump, after spent the weekend at the Bedminster residence, raises his fist on 3 August 2025 when he arrived at the White House on the Washington DC.
Mandel Ngan | AFP | Getty Images
Since the deadline for making a trade agreement with the US is only for days away, tensions and fears are rising in Switzerland.
Without an agreement, Switzerland faces 39% of its goods imported to the United States after being hit with one of the highest new tariff rates under US President Donald Trump’s latest trade policy shift last week. Previously, widespread reports have previously been approaching a trade agreement and missed Trump’s signature.
During the weekend, Swiss President Karin Keller-Sutter and Trump, rejected by Swiss officials by Swiss officials, reported that he was watching an unpleasant Thursday phone call between Trump. Reuters. The Swiss Federal Chancellor did not respond immediately to CNBC’s request for comments.
Guy Parmelin, a member of the Swiss Federal Council and President of the Ministry of Education and Research, said that the local media is open to changing the government’s proposal to the USA – but it may be difficult to finalize until August 7 reported.
Swiss leaders will meet on Monday to discuss the latest developments.
Elsewhere, the US Trade Representative Jamieson Greer is a bit of a hurry for a bit of a close trade agreements, moment CBS, in the coming days, the latest tariffs do not expect to be negotiated lower and “these tariff rates are almost determined,” he said.
Concerns in the Swiss business world
Industrial groups and business leaders have increased potential sprinkling alarm for businesses that could include major business losses.
On Monday, CNBC told Carolin Roth and Ritika Gupta on Monday “Europe early edition”.
Atteslander said that it would be difficult for Swiss enterprises to balance the effect of a 39% tariff. “For many companies, such a high proportion for many companies, and we are convinced that an agreement is better than interrupting trade for both parties.”
Although Switzerland prioritizes diversification and Swiss enterprises have found success worldwide, in terms of export markets, “the United States did not replace the United States”, he added.
Key Swiss exports include chemical and pharmaceutical products, watches and jewels, gold, chocolate and electronics.
Switzerland’s Blue Chip SMI Index was closed for a national holiday when the new US tariff was announced on Friday, but on Monday, London was opened 1.2% lower at 8:30 am. Chemicals firm Sika shares dropped 2.1%, while luxury groups Richemont and Roche traded about 1.5% lower.
The wider Swiss all stock index decreased by 1.5% in early agreements.
UBS analysts said on Friday, the direct impact on the general Swiss stock market from new tasks “negative, but not destructive,” he said. The worst hit companies’ watches and machinery manufacturers, some Medtech businesses and smaller companies that are more dependent on exports.
Fears, in a scenario that is not deal, Swiss emerged in the economic appearance.
EFG Asset Management Senior economist Gianluigi Mandruzzato, CNBC’nin said in a statement on Monday, the risk of stagnation of Swiss stagnation increased after the announcement, US export tariffs will affect about 10% of the economy, he said.
Mandruzzato, taxes to the economy and therefore interest rates to zero to eliminate the power of weak inflation and the power of the Swiss Frang will create a deflationist pressure on the National Bank of the Swiss, he added.
An agreement in front?
According to Economiesuisse’s Atteslander, business leaders hoped to reach a Swiss-US agreement in a timely time, and there is now much uncertainty.
While the Swiss government is working on a new offer, “it is completely open now.”
Mandruzzato, the government’s last delivery date before the date of 39% can make a better agreement, “very difficult to say,” he said.
“Apparently trade negotiations with the United States at the end of Donald Trump’s preferred.”
– Carolin Roth from CNBC and Ritika gupta He contributed to this report.
