U.S. President Donald Trump has signed an executive order imposing a 39% tariff on all imports from Switzerland, one of the highest duties applied by Washington in its sweeping reset of trade policy. The levy, scheduled to take effect on 7 August, surpasses a 31% rate floated in the spring and replaces the 10% baseline duties introduced in April. A White House official said the decision reflects Switzerland’s "refusal to make meaningful concessions" and is intended to narrow a goods-trade imbalance that reached almost $39 billion last year. Pharmaceutical products—Switzerland’s single-largest export to the United States at roughly $35 billion—are understood to be excluded from the measure for now, although a separate national-security review could still subject the sector to additional duties. Bern reacted with "great regret" and said it will keep talking to U.S. authorities while it "assesses the new situation". President Karin Keller-Sutter, who had pressed the case in last-minute calls to Trump, argued that American goods already enjoy 99.3% duty-free access to the Swiss market, leaving limited scope for further concessions. Business groups warned of significant fallout. Swissmem, which represents the mechanical and electrical engineering industries, said tens of thousands of jobs could be at risk. The United States is also the top foreign market for Swiss watches, accounting for 16.8% of exports, or about CHF 4.4 billion; luxury-goods makers and precision-instrument firms now face the choice of absorbing the additional cost or passing it on to U.S. consumers. The 39% rate dwarfs the 15% tariff the European Union accepted in its own negotiations with Washington. Talks are expected to continue up to the 7 August deadline, but absent a breakthrough Switzerland may challenge the measure at the World Trade Organization or consider targeted counter-measures.