The Swiss stock market reacted sharply to the newly imposed tariffs, with significant losses. Additionally, the Swiss franc weakened noticeably against both the euro and the dollar.

But it’s not just the tariffs weighing on the market. The Swiss stock exchange was closed last Friday due to a public holiday, so it is now catching up with the negative developments seen elsewhere. Weak labor market data in the U.S. had already dragged down markets in the U.S. and Europe at the end of last week.

Currently, about three hours after trading opened, the Swiss Market Index (SMI) is down 0,7 percent at 11'755 points. This marks a partial recovery from even steeper losses at the start of the session. The SLI, which comprises the 30 largest stocks, is down 0,65 percent at 1'956 points.

Partners Group Rebounds

Looking at the SLI's list of losers, economically sensitive stocks are unsurprisingly among the hardest hit, including staffing firm Adecco (-2,8 percent), ABB (-1,5 percent), and Sika (-1,6 percent).

However, financial stocks are also seeing notable declines. Julius Baer shares are down 2,3 percent to CHF 53,96, while UBS is losing 1,1 percent to CHF 30,11. Vontobel shares are down 0,7 percent to CHF 59,00.

Partners Group, however, has recovered from more significant early losses and is now only 0,3 percent lower at CHF 1'098,50, after having fallen to CHF 1'056 at its lowest point.

Among insurance stocks, the picture has also brightened somewhat: Swiss Re is down 0,2 percent, Swiss Life remains unchanged, and Zurich Insurance even gains 0,3 percent, showing a mixed performance.

Fickleness as a Ray of Hope?

The tariffs—described in the media as a «bludgeon,» «hammer,» or «shock»—have hit Switzerland’s economy and politics hard. Those who viewed Trump earlier this year as a kind of economic liberal savior may now be thoroughly reconsidering that opinion.

Yet, there remains hope that the tariff rate on Swiss goods could be reduced after further talks or negotiations. A level around 15 percent, similar to the rate applied to the EU, is not entirely out of reach. Given the pattern of finality, consistency, and steadfastness that has characterized Trump's decisions so far, such a reduction is indeed a possibility.