Switzerland Is Stunned by 39% U.S. Tariff

Source Credit : CNBC

Switzerland is officially on holiday Friday for the country’s national day. But many market watchers have been hauled back to their desks by news overnight that they have been hit with a 39% tariff rate by the White House.

That came as a shock to the Alpine nation. Indications in the Swiss press had been that the country was close to negotiating an outline deal similar to those struck by the European Union, the U.K. and Japan, which set baseline tariffs between 10% and 15%. Instead, it has received one of the highest rates of any country.

That is hugely significant, with the U.S. accounting for around a sixth of Switzerland’s total exports. Businesses breathed a sign of relief in April when the country swerved initial plans for a 31% tariff, being handed an interim 10% duty along with most of the world.

Switzerland's top export Countries in 2024

As of late Thursday, new tariff rates on a dozens of countries that have not yet agreed a framework trade arrangement with the U.S. are set to come into force from Aug. 7. Given the precedent set by U.S. President Donald Trump for last-minute deadline changes and down-to-the-wire deals, that does leave room for the situation to change.

Another potential reprieve came as the Swiss Federal Department of Economic Affairs told Reuters on Friday it understands the 39% tariff will not include the pharmaceutical sector, which is separately facing volatility from Trump’s latest comments on drug pricing. CNBC has contacted the White House for comment.