Switzerland is bracing for a significant impact from new 39% US tariffs set to take effect later this week, with business leaders warning of massive job losses and economic uncertainty. The Swiss government has vowed to continue negotiations with the US, but analysts say a deal seems unlikely before the deadline.
Concerned industry groups and economists predict that Swiss businesses will struggle to offset the tariff’s impact, citing sectors such as watchmaking and pharmaceuticals. The tariffs are set to affect around 10% of Switzerland’s economy, putting deflationary pressure on the country’s National Bank and exacerbating weak inflation. With no clear sign of a deal, fears of a Swiss recession are growing.
The US Trade Representative has stated that the tariff rates are likely set in stone, and business leaders are scrambling to mitigate potential losses. Despite these challenges, the Swiss government remains committed to finding an attractive offer for the White House. As the deadline approaches, Switzerland’s stock market teeters on uncertainty, with the SMI index experiencing a volatile start to the week.
Source: https://www.cnbc.com/2025/08/04/swiss-tensions-run-high-as-clock-ticks-on-us-tariff-deadline.html