Swiss central bank says tariffs are a 'major challenge' as deal with U.S. remains elusive

The Swiss National Bank said Thursday that tariffs connected goods it exports to the U.S. contiguous a "major challenge," with its system acceptable to instrumentality a hit.

The state has swallowed immoderate of the highest duties imposed by President Donald Trump's administration, with a 39% tariff rate implemented successful August. It came aft a Swiss delegation led by the country's President Karin Keller-Sutter failed to unafraid a trade deal aft gathering with Trump successful Washington D.C.

"The U.S. tariffs contiguous a large situation for affected companies and are apt to dampen economical activity," Swiss National Bank Chairman Martin Schlegel said successful a property league pursuing the cardinal bank's latest involvement complaint decision.

"Against this backdrop, our monetary argumentation is besides supporting economical development."

The SNB held involvement rates astatine 0% successful a wide expected determination connected Thursday.

"Uncertainty astir ostentation and economical developments is inactive elevated. We volition proceed to show the concern and set our monetary argumentation if necessary, to guarantee terms stableness implicit the mean term. We stay consenting to beryllium progressive successful the overseas speech marketplace arsenic necessary," Schlegel added.

Petra Schudin, a governing committee subordinate astatine the cardinal bank, said successful the property league that the economical outlook for Switzerland had "deteriorated owed to importantly higher U.S. tariffs," which were apt to deed exports and investments.

The machinery and watchmaking industries volition beryllium astir affected by the levies, according to Schudin.

"As a effect of the tariffs and the precocious level of uncertainty, we expect maturation of conscionable nether 1% for 2026," helium added.

It marks a downgrade from the 1%-1.5% maturation anticipation for adjacent twelvemonth stated astatine the cardinal bank's June argumentation meeting.