Switzerland is on holiday on Friday due to the country’s national holiday. But many analysts have returned to their offices by the news overnight that they have been hit at a 39% duty rate by the White House.

This was a shock to the Alpine nation. The indications in the Swiss press were that the country was close to negotiating a framework similar to those entered into the European Union, the United Kingdom and Japan, which define basic duties between 10% and 15%, according to CNBC. Instead, he received one of the highest duties from any other country worldwide.

This is extremely important for Switzerland, as the US represents about one sixth of Switzerland’s total exports. Businesses took a breath of relief in April when the country avoided 31% duty plans and received a 10% temporary duty with most of the planet

Since Friday, the new tariff rates for dozens of countries that have not yet agreed on a US-based trading agreement with the US will have come into force on August 7. Given the previous one created by US President Donald Trump for last -minute changes, this leaves room for the situation to change.

A slight relief is caused by the fact that the 39% duty will not include the pharmaceutical sector, according to a statement by the Swiss Federal Ministry of Finance in Reuters.

Meanwhile, the White House, in a statement, said that “Switzerland refused to make substantial concessions by reducing trade barriers with the US”.

‘Surprised’

In the midst of uncertainty, the reactions were overwhelmingly negative on Friday.

The Swiss federal council said “with great regret that, despite the progress made in the bilateral conversations and the very constructive stance of Switzerland from the beginning, the US intends to impose unilateral additional duties.

The Swissmem Management Association said that a 39% duty would hit the technology industry, exports and, therefore, the whole country, noting that every second francs entering the economy comes from external trade.

The London Stock Exchange listed Watches of Switzerland fell 8.22%.

In a Friday note to their customers, investment bank analysts have reported Watches of Switzerland, along with Richemont and the Swatch Group, as one of those that will receive the biggest blows from Trump duties.