(Market Insider) – The Swiss National Bank (SNB) cautioned on Thursday that escalating U.S. tariffs are creating significant pressure on Swiss exporters, with growth prospects now downgraded amid an uncertain global trade environment.
Speaking after the SNB’s latest policy decision, Chairman Martin Schlegel described the tariffs as a “major challenge”that could weigh heavily on economic activity. Switzerland has faced some of the steepest duties imposed by the Trump administration, including a 39% tariff introduced in August following unsuccessful trade negotiations in Washington led by Swiss President Karin Keller-Sutter.
“The U.S. tariffs present a major challenge for affected companies and are likely to dampen economic activity,” Schlegel told reporters. He added that monetary policy will continue to support growth, while the SNB remains ready to intervene in currency markets if necessary.
The central bank left its policy rate unchanged at 0%, in line with market expectations, noting persistent uncertainty around inflation and economic conditions.
Petra Schudin, a member of the SNB’s governing board, warned that the outlook for Switzerland had “deteriorated due to significantly higher U.S. tariffs,” particularly in the country’s flagship machinery and watchmaking sectors.
Growth for 2026 is now projected at just under 1%, a downgrade from the 1%–1.5% range forecast in June. The weaker outlook reflects not only tariffs but also declining investment sentiment amid heightened trade frictions.
For global investors, Switzerland’s experience underscores how geopolitical tensions and protectionist policies are reshaping trade flows and investment strategies across Europe.
