The Swiss franc remained subdued around 0.81 per USD, as traders assessed the potential impact of steep US tariffs on the domestic economy, combined with expectations of upcoming rate cuts. A 39% tariff on Swiss exports - among the highest globally - formally took effect, despite last-minute negotiations between a Swiss delegation and US officials. The measure is expected to affect around 60% of Swiss exports to the US, its largest market for goods such as pharmaceuticals, watches, machinery, and chocolate. While the Swiss government remains committed to dialogue, analysts say its ability to reverse the decision appears limited. On the domestic data front, inflation rose slightly to 0.2% year-on-year in July, above expectations of 0.1% but still hovering near zero. The subdued price growth, combined with mounting external risks, suggests the Swiss National Bank may still move to lower interest rates further into negative territory.