UBS CEO Sergio Ermotti expects U.S. tariffs to weigh on Switzerland’s economic growth and contribute to higher inflation. He expressed deep disappointment over the tariffs imposed on Switzerland, according to news agency «AWP» reporting from the Economiesuisse event in Baden

The Swiss banking giant will also feel the effects. «We must prepare for challenging times,» Ermotti said, noting that many of UBS’s clients are directly affected.

«When tariffs drop from 39 percent to 15 percent, that is not good news—it is simply less bad.» At the same time, he voiced confidence that the Swiss Federal Council would be able to reach an agreement on lower duties.

UBS Should Not Shrink

On the debate over stricter regulation of the big bank, Ermotti said he had no intention of reducing UBS’s size, according to «Reuters». He is confident that a «reasonable solution» can be found to the regulatory issues currently under discussion in Bern. But downsizing the bank, he insisted, is not the right approach for UBS.

«Shrinking the bank is not a strategy.»

Call for a Collective Effort

Economiesuisse President Christoph Mäder emphasized that the success of the Swiss economy rests on a globally oriented financial center and a strong export sector. Currently, he said, the Swiss economy is under considerable pressure.

«What is needed now is a collective effort to strengthen Switzerland as a business location and to ease the burden on companies,» Mäder stressed. He welcomed the Federal Council’s recognition of the urgent need for action and its mandate to government departments to swiftly develop relief measures. Equally important, he said, is for the government to consider postponing projects not yet completed that would impose significant costs on companies.

Federal Councillor Guy Parmelin, who had been scheduled to speak at the event, canceled his participation due to a last-minute trip to the U.S..