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

Switzerland is officially on holiday on Friday for the national day of the country. But many market audiences The White House was shot by the White House with a 39% tariff rate.

This came to the Alp nation as shock. The Swiss presses were close to negotiating a draft agreement similar to those who have been hit by the European Union, England and Japan and similar to those who set basic tariffs between 10% and 15%. Instead, Highest rates any country.

The United States explains that Switzerland’s total exports are about six. In April, when the country continued its first plans for a 31% tariff and a 10% task with most of the world, a relief sign breathed.

New from late hours on Thursday Tariff rates in a dozens of countries Since a framework trade regulation with the United States has not yet decided to enter into force from 7 August, US President Donald Trump leaves space for the change of the situation, considering the last -minute final date changes and the precedent set for the downward agreements.

Another potential Reprieve said that the Swiss Federal Ministry of Economic Affairs said that 39% of Trump would not include the pharmaceutical sector in which Trump played separately from Trump’s latest comments on drug pricing. CNBC contacted the White House for a comment.

Swiss Federal Council in question “Despite the progress in the bilateral talks and the very constructive stance of Switzerland from the very beginning, there was a great regret that the United States plans to bring unilateral tariffs from Switzerland to imports.” He added that he continued to search for a “negotiated solution” and that he was in contact with US officials.

The Production Association Swissmem said that a 39% tariff would be “extremely difficult” to the technology industry, exports and thus the whole country, and that every second Frank was made from foreign trade.

“I’m stunned. These tariffs are not based on a rational basis and not enjoyment. This decision is at risk tens of thousands of jobs.” He said.

Porta Advisors’ president and partner Wittmann said that the news has given a “destructive” blow to the Swiss economy and businesses.

“The US leads to a unilateral war for tariffs, and this unpredictability brings an increasing risk premium on financial assets.” He said. “This will lead to the weakening of the Swiss economy, the Swiss Frang and the Swiss stock market, especially the very important export sector.”

Wittmann, the Swiss government, especially for small, very much exposed states “cherry collection, carving outlets and special opportunities” time to realize that the time is over.

Key Swiss exports include chemical and pharmaceutical products, watches and jewels, chocolate, precious stones and electronics.

Capital Economics European economist Adrian Prettejohn said that a tariff rate of 39% would hit 0.6% of the Swiss GDP or more with the inclusion of pharmaceuticals – but it expects it to be negotiated.

When the Swiss stock exchange is closed for the national day, the indicators are fed by other ways, such as the performance of the Swiss watches that listed London, which decreases 9% in the morning agreements.

In a note to customers on Friday, investment bank Jefferies analysts referred to the company with Richemont and Swatch group among those who received the largest hit from the news, especially according to previous expectations. However, the start date of August 7, “last -minute changes and changes to be permitted” is allowed, he added.

Meanwhile, Swiss Franc recorded around 0.4% against the US dollar on Friday.

This comes after Greenback this year in Frank this year, and there are about 11% gains while hunting for investors safe-hazen assets. The rally provided difficulties to the economy that pushed the National Bank to zero in June, which has returned to deflation for the first time since the COVİD-19 PANDEM in May.

Swiss-American Chamber of Commerce CEO, CEO Rahul Sahgal, CNBC’s “Squawk Box Europe”, tariff news after many negotiations with the US Treasury department “very disappointment” said.

“However, I hope and I don’t think it’s the last,” he said.

“First, those days are until August 7, and if you read the execution order, leave a certain window open, if you are in negotiations with the US, let’s say that these additional tariffs may not be valid.”

An element of previously hit agreements is the commitment to increase the investment in the US in the case of the EU. Set a total of $ 600 billion with hundreds of billions of additional energy intake. Sahgal said that he was looking at an investment hostage of $ 150 billion, one of the biggest ones, according to the size of Swiss economy. Authorized, the country is already the biggest sixth general investor in the United States, he added.

Sahgal, it is difficult to say what the point of adhesion in the negotiations or how the rate of 39% was calculated, and that the trade relationship between Switzerland and the United States is balanced between the goods and services – but Trump focuses on only the first.

“Swiss is a country of 9 million people and the United States has 30 million people. So … Every Swiss bottle of a bottle of bourbon and drinking a steak every day and buying a Harley Davidson, we can not balance the trade of goods,” he said.

– Carolin Roth of CNBC, Sophie Kiderlin and Ganesh Rao contributed to this story.