Switzerland is reeling after President Trump slapped a surprise 39% tariff on its exports, rattling markets and sparking political fallout. The move hit Swiss luxury goods, machinery, and pharmaceuticals—sectors that depend heavily on access to the US market, the Guardian reports. The tariffs, announced early Friday local time, are set to kick in on Thursday. The 39% tariff—higher than the 31% Trump announced on his "Liberation Day"—is higher than tariffs Trump has imposed on any other wealthy country, reports the Wall Street Journal.
Swiss negotiators had expected to secure a 10% tariff after months of talks. But following what's being described in local media as a "badly misjudged" and "disastrous" 30-minute call between President Karin Keller-Sutter and Trump on Thursday, the White House went far higher, blindsiding Swiss officials and industry alike. The Blick tabloid called it Switzerland's greatest defeat since 1515, when the French won a major battle, the Financial Times reports. The Swiss stock market, closed for a national holiday on Friday, plunged 1.8% when it reopened on Monday, though it later recovered most of its losses.
The Swiss cabinet convened for emergency talks and announced it's ready to sweeten its offer to Washington, though specifics remain under wraps. Local headlines have skewered Keller-Sutter, with tabloids accusing her of being "too naive" in negotiations. Swiss officials insist the tariff jump wasn't directly caused by the call, but admit the exchange did nothing to help. "The call was not a success, there was not a good outcome for Switzerland," a government source tells Reuters. "But there was not a quarrel. Trump made it clear from the very beginning that he had a completely different point of view, that 10% tariffs were not enough."
story continues below
The US has a $39 billion trade imbalance with Switzerland, and sources tell the FT that during the phone call, Trump was fixated on Switzerland "stealing money" from the US. Economists warn that the tariff's scope could tip Switzerland—where US exports make up a sixth of total foreign sales—into recession territory, especially if pharmaceuticals get pulled in.
,
uBlock 
,
and
Ghostery 
)
