U.S. President Donald Trump raised tariffs on Swiss imports to 39% after a phone call with Swiss President Karin Keller-Sutter, blindsiding negotiators who believed a preliminary accord was in place. The levy applies to all Swiss goods and comes as Zurich’s stock exchange prepares to reopen after a national holiday, with investors bracing for declines in watchmakers, luxury groups and pharmaceutical companies that rely heavily on the U.S. market. Switzerland’s business minister said Bern is ready to revise its offer in an effort to defuse the dispute. The U.S. was the destination for roughly 19% of Swiss merchandise exports last year—more than $60 billion—underscoring the potential hit to companies such as Nestlé, Novartis and UBS. American depositary receipts of several Swiss firms slipped on Friday, signalling market concern ahead of Monday trading. Washington’s move is part of a broader tariff package that sets duties of 35% on Canadian goods, 50% on Brazilian products starting Aug. 6 and 25% on Indian exports. Bank of America now pegs the average effective U.S. tariff rate at 14.6%, warning of further upside risk if sector-specific measures follow. China has responded to the squeeze on Brazil by approving 183 Brazilian coffee companies to ship to its market for the next five years. Brazil supplies about one-third of U.S. coffee demand—around eight million 60-kilogram bags annually valued at $4.4 billion—so Beijing’s decision offers an immediate alternative outlet as Brazilian exporters reassess their U.S. exposure ahead of the higher duties.