U.S. President Donald Trump raised his fist when he arrived at the White House in Washington, D.C. on August 3, 2025, after spending the weekend at his Bedminster residence.
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Tensions and fears are growing higher in Switzerland as the deadline for trade agreements with the United States approaches the closest days.
No deals, Switzerland Face 39% of responsibilities Its goods imported to the U.S. are one of the highest new tariff rates under President Donald Trump’s latest trade policy shift last week. The higher duty surprised many people, as extensive coverage previously indicated that the trade agreement was about to end and that Trump’s signature was just missing.
Last weekend, reports were reported that the higher tariffs came after a nasty call between Swiss President Karin Keller-Sutter and Trump, which Swiss officials refused. Reuters.
Guy Parmelin, a member of the Swiss Federal Council and head of the Education and Research Department for Economic Affairs and Education, told local media that the government is willing to adjust its proposal to the United States, but it may be difficult to determine the finality before the August 7 deadline. Report.
Swiss leaders will meet on Monday to discuss the latest developments.
Elsewhere, U.S. Trade Representative Jamieson Greer has been somewhat shattered in a series of imminent trade agreements, Tell CBS News said he does not want the latest tariffs to be lowered in the coming days and that “these tariff rates are almost determined.”
Worries of Swiss business community
Industry groups and business leaders raise alarms on the potential impact of businesses, which could include massive unemployment.
“It’s much more than a surprise,” Jan Atteslander, head of the International Relations Department and head of the Economic Racing Administrative Committee, told CNBC’s Carolin Roth and Ritika Gupta on Monday.
Atteslander noted that it is difficult for Swiss companies to offset the impact of the 39% tariff. “For many companies, such high interest rates will only cut trade, and we firmly believe that a deal is still better for both parties than cutting trade.”
He added that while Switzerland prioritizes diversification and success in Swiss businesses around the world, it has “no replacement for the United States” in terms of export markets.
Key Swiss exports include chemicals and medicines, watches and jewelry, gold, chocolate and electronics.
Switzerland’s blue-chip SMI index was closed on national holidays when new U.S. tariffs were announced on Friday, but opened about 1.2% at 8:30 a.m. in London on Monday. Shares of chemical company Sika fell 2.1%, while luxury goods groups Richemont and Roche traded about 1.5%.
In early trading, the broader Swiss full share index fell by 1.5%.
UBS said on Friday that the direct impact of the new responsibilities on Swiss stocks overall will be “negative, but not destructive”. They marked the worst that would include watch and machinery manufacturers, some Medtech businesses, and smaller companies that rely more on exports.
In the absence of transactions, fear of Switzerland’s economic outlook is also emerging.
Gianluigi Mandruzzato, a senior economist at EFG Asset Management, told CNBC’s “Early European Edition” on Monday that the risk of a Swiss recession increased after the announcement, and U.S. export tariffs would affect about 10% of the economy.
Mandruzzato added that the levy would also put deflationary pressure on the economy, thus putting pressure on the Swiss National Bank, which has lowered interest rates to zero to avoid weak inflation and the strength of the Swiss franc.
Future transactions?
According to Atteslander of the Economics, while business leaders hope to be able to reach a Swiss-US deal in a timely manner, there is a lot of uncertainty at the moment.
He said the Swiss government is making new offers when it is “currently this is completely open.”
Mandruzzato said whether the government can negotiate a better deal, i.e. 39% interest rate before the deadline, is still “hard to say” and uses potential bargaining tools, including higher purchases of U.S. energy or more direct investments into the U.S.
“It seems that the trade negotiations with the United States ultimately boil down to what Donald Trump prefers,” Mandruzato said, adding that it is also difficult to assess what the final negotiation point might be.
-CNBC’s Carolin Roth and Ritika Gupta Contributed to this report.
