On Friday, the Swiss government said that it was disappointed by the lack of an agreement but it remains in contact with the US authorities and still hopes to find a negotiated solution.

The new list of tariff rates that will apply from 7 August was published by the US government last Thursday, raising them to 39 per cent. The proposed tariff rate on Liberation Day in April was 31 per cent, and 10 per cent during the subsequent “reciprocal” tariff pause, which ended on 1 August.

The US is an important trading partner for Switzerland and accounted for around 19 per cent of all Swiss goods exports in 2024. The Swiss trade deficit with the US was $47.4 billion in 2024; if service industries are included, the deficit shrinks to $22 billion. Switzerland sells more goods to the US than it buys –mainly pharmaceuticals, gold jewellery, watches and machine tools.

However, believes that this is a negotiating tactic, as has happened over recent months with other countries. "India has been negotiating a broader Free Trade Agreement (FTA) with the US, following India’s 2025 FTA agreement with the UK, and Prime Minister Modi has previously announced a target to increase bilateral trade from $191 billion in 2024 to $500 billion by 2030. We do not think that these longer-term ambitions have changed," Sell said. He highlighted that India’s exports to the US represent 2.5 per cent of Indian GDP, less than a tenth of that of Vietnam or Mexico. India’s 6.5 per cent+ predicted GDP growth over the coming years is driven by domestic factors such as demographics, urbanisation and the shift from the informal to the formal sector – not exports.

Meanwhile, on Wednesday President Trump said that a deal had been reached with South Korea that would impose a 15 per cent tariff on imports to the US for South Korea, which was praised by South Korean leader Lee Jae Myung. South Korea had been facing a 25 per cent levy if it had not struck a deal. The 15 per cent tariff rate will cover both cars and semiconductors, two of the country's main exports to the US. But steel and aluminium will be taxed at 50 per cent, in line with the global rate set by Trump.

A trade framework to impose 15 per cent tariffs on Japan, a key competitor in the car and manufacturing industries, has also been struck. Agreements have also been made with the EU and the UK, amongst others. See more commentary here, here and here.