Nederlands
English
French
Deutsch
Espaniol
Portugese
Swiss Markets React to US Tariff Shock
The Swiss stock market (SMI) opened with a 1.8% loss following Washington's announcement of 39% import tariffs on Swiss goods. The unexpectedly high rate has plunged the Swiss government into crisis mode, with fears mounting about potential economic fallout.
Diplomatic Breakdown
The tariffs announced on Switzerland's national holiday (August 1) place the country alongside Brazil, Syria, Myanmar and Laos as facing America's highest trade penalties. Reconstructions reveal a disastrous phone call between President Karin Keller-Sutter and President Trump preceded the decision. According to Swiss media, Trump kept Keller-Sutter waiting for 10 minutes before dismissing Switzerland's proposed 10% tariff compromise.
Economic Impact
Swiss exports to the US include high-value products like luxury watches (Swatch, Richemont), pharmaceuticals, and Nestlé's Nespresso capsules. The tariffs disproportionately target these sectors while largely sparing service industries and banks like UBS. Industry association Handel Schweiz warns of a 'trade catastrophe' and potential job losses.
EU Contrast and Political Fallout
The 39% rate starkly contrasts with the 15% tariffs negotiated by the EU, highlighting Switzerland's disadvantage as a solo negotiator. Keller-Sutter faces criticism for her handling of the crisis, with opponents calling her approach naive. The government is considering economic stimulus measures and exploring closer EU ties despite opposition from the nationalist SVP party.
With tariffs taking effect Thursday, Bern races to negotiate a last-minute agreement while markets remain volatile.
