Introduction to the Swiss National Bank’s Concerns
The Swiss National Bank (SNB) has expressed concerns over the tariffs imposed by the United States on Swiss goods. These tariffs, which were implemented in August, present a significant challenge to Swiss exporters. The SNB’s concerns were voiced after a Swiss delegation, led by President Karin Keller-Sutter, failed to secure a trade deal with the US after meeting with President Donald Trump in Washington D.C.
The Impact of Tariffs on the Swiss Economy
The tariffs imposed by the US have a 39% tariff rate, which is one of the highest duties imposed by the Trump administration. The SNB’s Chairman, Martin Schlegel, stated that the US tariffs "present a major challenge for affected companies and are likely to dampen economic activity." However, Schlegel also noted that the impact on the economy as a whole should be limited, with the SNB predicting growth of 1 to 1.5% in 2025 and roughly 1% in 2026.
Industries Affected by the Tariffs
The machinery and watchmaking industries are expected to be the most affected by the tariffs. Petra Schudin, a governing board member at the SNB, stated that these industries will face significant challenges due to the high tariffs. The SNB has downgraded its growth expectations for 2026 to just under 1%, citing the tariffs and high level of uncertainty as the main reasons.
Monetary Policy and Economic Support
The SNB has held interest rates at 0% in an effort to support economic development. Schlegel stated that the central bank’s monetary policy is also aimed at supporting economic activity, which is expected to be dampened by the US tariffs. The SNB’s efforts are focused on mitigating the impact of the tariffs on the Swiss economy and ensuring that growth continues, albeit at a slower rate.
Conclusion
In conclusion, the Swiss National Bank has expressed concerns over the impact of US tariffs on the Swiss economy. While the tariffs are expected to pose significant challenges to exporters, the SNB believes that the impact on the economy as a whole will be limited. The central bank has downgraded its growth expectations for 2026, but still predicts growth, albeit at a slower rate. The SNB’s efforts to support economic development through monetary policy are aimed at mitigating the impact of the tariffs and ensuring that the Swiss economy continues to grow.
