Editor’s Note
This article examines the immediate market impact of new U.S. tariffs on Swiss goods, highlighting the vulnerability of key Swiss sectors, particularly pharmaceuticals and finance. The analysis underscores the significant exposure of Switzerland’s export-driven economy to shifts in U.S. trade policy.
The Swiss Market Index (SMI) collapsed in Europe.
The pharmaceutical sector accounts for nearly 10% of Switzerland’s GDP and is heavily dependent on the U.S. market.
UBS fell up to 3.3% during the session, and Richemont retreated 1.5%.
On Monday, August 4th, the first trading day following the announcement of a 39% tariff on Swiss products, the Swiss Market Index fell up to 2.5%. Among the hardest-hit stocks were UBS, which fell up to 3.3% before recouping some losses, and Richemont, which declined 1.5%.
Roche also suffered, with a drop of approximately 1.8%. The announcement coincided with the closure for a national holiday, which amplified the surprise among investors.
Swiss companies in luxury goods, financial services, and pharmaceuticals are particularly vulnerable to the new U.S. tariff.
Sectors such as watchmaking, jewelry, medical machinery, and chemicals are directly impacted by the measure, according to CNBC.
The U.S. market represents a key destination for exports from brands like Roche or Richemont. The main problem is that these companies now face higher costs to access that market, with immediate effects on margins and, consequently, on demand.
Meanwhile, U.S. President Donald Trump’s demand for global pharmaceutical companies to commit to lowering prices adds more pressure to companies like Roche.
Analysts at Lombard Odier have already reduced their growth projection for Switzerland in 2025 from 1.1% to 0.9% and warn that the forecast could worsen if tariffs remain.
The prospect of a prolonged trade policy with high rates threatens to slow the country’s growth and introduce deflationary pressures.
The Swiss franc fell approximately 0.5% against the euro and 0.6% against the dollar, representing greater pressure on the monetary policy of the Swiss National Bank, which already has rates at zero and has studied negative options.
Negotiations between Switzerland and the U.S. intensified after a tense call between the Swiss president and the U.S. leader, although some official sources deny there is a conflict, says the Financial Times.
The Swiss government said it wants to negotiate. Among possible concessions, there is talk of increased purchases of U.S. energy or direct investments in that country, but the solution largely depends on a political decision by Trump.
Roche (global pharmaceutical with strong presence in the U.S.)
Richemont (luxury, watchmaking, and jewelry)
UBS (international banking with ties to the U.S. market)