Trump’s Swiss Tariffs Higher Than Expected, SNB’s Tschudin Says

(Bloomberg) — The US’s decision to slap Switzerland with a 31% tariff leaves the country with a higher levy than anticipated, according the Swiss National Bank Governing Board member Petra Tschudin.

“It was surprising how high the tariff was,” she said Thursday in Zurich. “This is more than was priced in,” she said. “We’ll have to see how it plays out.”

“I was very surprised by this number — it doesn’t correspond to my understanding of things. As for how it was calculated, media appear to suggest that there’s a fairly simple formula based on trade balances, but it doesn’t actually directly relate to customs levies.”

Her comments come after President Donald Trump announced a new wave of trade measures, which will take effect April 9. Swiss Finance Minister Karin Keller-Sutter said earlier in the day that the government “will quickly determine its next steps.”

Switzerland’s “long-term economic interests are paramount,” she said on X. “Adherence to international law and free trade remain core values.”

Based on an estimate from the State Secretariat for Economic Affairs that a 10% increase in US trade barriers could reduce Swiss economic output by 0.3 points, the level announced on Wednesday implies that “the GDP reduction could approach 1 point within 18 months,” according to research from Oddo BHF.

The uncertainty caused by the tariffs could push the franc to appreciate, which in turn “could exacerbate deflation on most goods and services,” Oddo BHF’s Arthur Jurus said. “Excluding rents, Swiss inflation stands at -0.3%. A drop in demand and a sharper decline in imported prices could lead SNB rates to 0% or even negative territory more quickly.”

Tschudin wouldn’t be drawn on the likelihood of implementing sub-zero borrowing costs — the policy rate currently is at 0.25% — instead highlighting that “negative interest rates are an instrument that really helps us when it is needed for stabilization.” She also declined to say if the franc is over or undervalued.

Overall though, she struck a cautiously optimistic tone.

“As a small, open economy, Switzerland is very exposed to the world,” she said. “We have experienced shocks in recent years that Switzerland has been able to absorb quite well.”

(Updates with addition quote in third paragraph)

©2025 Bloomberg L.P.