Swiss equities fell sharply on Monday as trading resumed after the National Day holiday, giving investors their first chance to react to the United States’ surprise decision to slap a 39% tariff on Swiss exports. The blue-chip Swiss Market Index opened 1.9% lower, while broader European bourses traded higher, underscoring the tariff’s country-specific impact. Futures had pointed to similar losses overnight, and luxury watchmakers and pharmaceutical groups led the early decline. Bern convened crisis talks aimed at averting the levy, which the Trump administration announced late last week and which would rank among the steepest U.S. duties on a major trading partner. Officials said Switzerland is “determined to make a more attractive offer” to Washington and is ready to continue discussions past 7 August, when the measure is scheduled to take full effect. The government ruled out immediate counter-tariffs or other retaliatory steps. Bloomberg Economics estimates the 39% duty represents a trade shock of about 23 percentage points for Switzerland, putting roughly 1% of national output at risk over the medium term. Analysts warn that unless the surcharge is scaled back to levels closer to the 15% faced by several European peers, profit forecasts for export-oriented industries could be significantly downgraded.