AsianFin -- Switzerland’s financial community had hoped for a quiet Friday, with markets closed for the country’s national day. Instead, they were jolted back to their desks by news that the White House had slapped a 39% tariff on Swiss exports—one of the highest rates imposed on any nation.

The tariff hike blindsided Swiss officials and businesses alike. Local media had suggested that Switzerland was on the cusp of securing a framework agreement with the U.S., mirroring deals struck earlier this year with the European Union, the U.K., and Japan. Those agreements had established baseline tariffs in the range of 10% to 15%.

But Washington’s latest decision puts Switzerland among a small group of countries facing punitive duties. The move is particularly significant given that the U.S. accounts for roughly one-sixth of Switzerland’s total exports, spanning key sectors like pharmaceuticals, machinery, and luxury goods.

Back in April, Swiss exporters had breathed a collective sigh of relief when Switzerland dodged initial White House plans to impose a 31% tariff, receiving instead an interim 10% rate—aligned with most other global trade partners. Friday’s announcement has now shattered those expectations, raising fears of escalating trade friction and economic fallout.