Overview

• The White House issued an executive order on August 1 imposing a 39% ad valorem tariff on all Swiss imports to address a $38 billion goods-trade deficit
• The rate, up from a threatened 31%, takes effect on August 7 after bilateral talks failed to meet the deadline
• Shares of Watches of Switzerland Group fell more than 7% in early trading as investors braced for higher costs
• Swiss pharmaceutical, watchmaking, manufacturing and chocolate industries warn the levy could inflict severe price hikes and export disruptions
• The Swiss Federal Council says it remains in close contact with U.S. authorities and is seeking last-minute concessions to mitigate the impact