Swiss stocks declined on Monday, diverging from an otherwise upbeat session across European markets, after U.S. President Donald Trump imposed a steep 39% tariff on goods from Switzerland.
The Swiss Market Index closed down 0.2%, recovering somewhat from earlier losses of around 1.8%, as investors reacted to the unexpected trade move targeting the Alpine nation.
In contrast, broader European equities posted solid gains. The Stoxx Europe 600 ended the day 0.8% higher, driven by strength across major regional indices. The U.K.’s FTSE 100 rose 0.7%, lifted by strong performance in the banking sector, while France’s CAC 40 and Germany’s DAX jumped 1.1% and 1.4%, respectively.
The sudden imposition of tariffs on Switzerland by the U.S. marks a notable escalation in transatlantic trade tensions, potentially impacting key export sectors such as pharmaceuticals, machinery, and luxury goods.
Despite the setback for Swiss equities, market sentiment across the rest of Europe remained buoyant, bolstered by resilient earnings reports and easing inflation data in the eurozone.