Switzerland just learned that alpine neutrality offers zero protection from Trump’s trade wars. The country woke up on its national day to discover Trump had slapped it with a brutal 39% tariff — one of the world’s highest duty rates and well above the 31% originally planned. The punishing levy sent the Swiss franc tumbling 0.6% against the dollar on Friday.

• Switzerland’s $60.9B in annual US exports — led by pharmaceuticals, luxury watches, and $11.5B in gold — will face the punitive duties starting Aug. 7.
• The pharmaceutical industry faces a double hit as NovartisNVS
  and RocheRHHBY
  , which send 60% of their exports to the US, now face steep tariffs and Trump’s push to cut drug prices.

Breaking the bank: American watch collectors are in for a sticker shock as tariffs could stall growth in the Swiss timepieces industry, where sales have grown 14% annually since 2019. Despite Switzerland’s trade surplus with the US surging 56% in 2024, it finds itself grouped with Brazil, Syria, and Myanmar under America’s harshest trade penalties. Swiss President Karin Keller-Sutter expressed that the country is accustomed to managing “big storms,” but conceded it would be “very difficult” to offer further concessions to the White House.