Trump’s tariffs raise risk of negative interest rates in Switzerland

In the wake of US President Donald Trump’s 39% tariffs imposed on Switzerland, the likelihood of the Swiss National Bank (SNB) going back to introducing negative interest rates is increasing, according to an analysis published today by Raiffeisen. +Get the most important news from Switzerland in your inbox The shock caused by the announcement of US tariffs on Swiss products is profound and it seems almost impossible to reach a “reasonably acceptable negotiating result” on a lower customs rate, the institute’s experts write. Moreover, Switzerland risks finding itself in even rougher waters with possible sectoral duties on pharmaceuticals. The situation will have repercussions for Swiss economic growth, not least because the country faces a “painful competitive disadvantage” compared to European Union members and the UK. However, the bank maintains its forecast – reduced in April following Trump’s first announcement of tariffs – of gross domestic product (GDP) growth of 1.3% in 2025 ...