On August 1, 2025, U.S. President Donald Trump imposed a 39% export tariff on Switzerland, one of the highest rates globally and significantly above the 15% baseline tariffs applied to the EU, Japan, and South Korea. The Swiss stock market reacted negatively, with the blue-chip Swiss market index opening 1.8% lower on the first trading day after the announcement and hitting its lowest level in over three months. The tariff took effect on August 8, 2025, after a last-minute effort by Swiss President Karin Keller-Sutter to negotiate a reduction during her visit to Washington failed to produce an agreement. The Swiss government stated that the tariffs place substantial strain on the country's export-driven economy and warned that if the tariffs remain for an extended period, the economic outlook could worsen compared to previous projections. Nearly 60% of Swiss exports to the U.S. are affected by the extra tariffs. Key Swiss manufacturers, including aircraft maker Pilatus Flugzeugwerke, have halted deliveries to the U.S. in response. The Swiss government continues to seek further talks with the U.S. to mitigate the impact, amid concerns about potential job losses of up to 15,000 in Switzerland. Some analysts suggest that UBS may find opportunities amid the tariff crisis, while others predict a mild recession if the tariffs persist. The Swiss government has declined to provide additional information on ongoing negotiations.