Tensions are high in Switzerland after the U.S. unexpectedly announced one of its harshest trade measures in years: a 39% tariff that could severely hit Swiss exports within days.

The country was caught off guard, as negotiations were believed to be nearly finalized – reportedly only needing Donald Trump’s signature. Instead of an agreement, a “tariff bomb” wiped the progress off the table.

A Heated Call and a Collapsed Deal?

According to Reuters, a tense phone call between Trump and Swiss President Karin Keller-Sutter may have triggered the sudden move. While Swiss authorities officially deny this, the atmosphere is increasingly strained. What was once diplomatic now feels like a standoff.

Economy Minister Guy Parmelin said Switzerland is willing to revise its offer to the U.S., but admitted that closing a new deal on time may be difficult. The Swiss government has scheduled an emergency meeting to decide next steps.

U.S.: “Tariffs Are Here to Stay”

Across the Atlantic, hope is quickly fading. U.S. Trade Representative Jamieson Greer told CBS News that no one should expect the tariffs to be lifted soon. “These rates are more or less set,” he stated. That crushed any remaining short-term optimism.

Jan Atteslander from Swiss business group Economiesuisse described the situation as shocking. “We were all taken aback. A tariff that high could completely break trade for many companies,” he warned. He also admitted that no other market can truly replace the U.S.

Markets Fall, Swiss Economy in Jeopardy

Financial markets reacted quickly. After a public holiday closure, the SMI index opened Monday morning in London with a 1.2% drop. Chemicals giant Sika fell by 2.1%, and luxury brands like Richemont and Roche slipped around 1.5%. The broader Swiss All Share Index also dropped 1.5%.

UBS analysts warned that the hardest hit will be smaller exporters – particularly in mechanical engineering, medical tech, and the traditional watchmaking sector. These industries form the backbone of Swiss exports.

Economist GianLuigi Mandruzzato of EFG Asset Management estimated that the new tariff could affect up to 10% of the Swiss economy. This raises the risk of a national recession. Adding to the pressure is the Swiss National Bank, which has already cut interest rates to zero to weaken the franc and support exports.

Time Is Running Out and Nothing Is Guaranteed

The Swiss government is now scrambling to craft a revised offer to the U.S. – possibly including more energy imports or increased Swiss investment in America. Yet even that might not help if Trump simply isn’t interested in a deal.

Mandruzzato summarized the issue bluntly: “Trade negotiations with the U.S. increasingly come down to whatever Donald Trump prefers.” Right now, the outcome is completely up in the air – and the clock is ticking.

#Switzerland , #TrumpTariffs , #TradeWars , #globaleconomy , #worldnews

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