The Swiss franc extended its decline to around 0.82 per USD, its lowest level since June 20, following the US administration’s decision to implement a 39% tariff on Swiss products, including luxury watches and pharmaceuticals. The rate, among the highest globally, exceeds the 31% initially proposed in April and is likely to have a substantial negative impact on Switzerland’s export-oriented economy. President Trump signed an executive order on July 31 implementing a 10% global minimum tariff, with rates rising to 15% or more for countries that maintain trade surpluses with the US. As a consequence of the newly imposed higher US tariffs on Swiss exports, the Swiss National Bank (SNB) - which already cut interest rates to zero in June - may be compelled to adopt a more dovish monetary stance. The next policy meeting is scheduled for 25 September 2025.