The Swiss Market Index fell as much as 1.9% on Monday, hitting its lowest level since April 22, after US President Donald Trump imposed a surprise 39% tariff on Swiss exports - well above the 31% rate announced in April. Luxury giants Richemont and Swatch were among the hardest hit, dropping up to 3% at the open. Pharmaceutical stocks like Roche and Novartis held up better, as drug exports were excluded from the new tariffs announced Friday. On the economic front, Swiss annual inflation ticked up to 0.2% in July, slightly above forecasts of 0.1%, but remained near zero. The subdued inflation reading reinforces expectations that the Swiss National Bank may move to cut interest rates below zero later this year. Also, the Swiss PMI fell to 48.8 in July from 49.6 in June, suggesting a sharper contraction in the manufacturing sector.