Switzerland is preparing to revise its trade offer to the United States after President Donald Trump announced a steep 39% tariff on Swiss imports, one of the highest in his global trade reset. Business Minister Guy Parmelin said the government would act quickly ahead of the August 7 implementation date, with the cabinet set to hold a special meeting on Monday. Parmelin indicated that options under consideration include increased Swiss purchases of U.S. liquefied natural gas (LNG) and further investments in the U.S., Switzerland’s largest export market for pharmaceuticals, watches, and machinery.

The move follows reports of a tense but non-confrontational call between Swiss President Karin Keller-Sutter and Trump, in which the U.S. leader rejected the idea of a lower 10% tariff. Swiss officials stressed they are in close contact with Washington and open to sending top representatives to the U.S. to negotiate. Parmelin said understanding U.S. expectations would be key to forming a basis for continued talks. Industry associations have warned the tariffs could put tens of thousands of Swiss jobs at risk, particularly in export-oriented sectors.

Economists warn that the tariff hike could significantly slow Switzerland’s economy, with Hans Gersbach of ETH Zurich estimating a 0.3% to 0.6% GDP drop, rising above 0.7% if pharmaceuticals are included. Prolonged trade disruptions could lead to a recession, he said. Financial analysts at Nomura predict the Swiss National Bank may cut its policy rate by 25 basis points to -0.25% in September to counter deflationary pressures. Swiss shares are expected to feel the impact when markets reopen after the National Day holiday.

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