Switzerland's Economy Contracts for First Time in Over Two Years Amid US Tariff Disruption

Switzerland's economy contracted in the third quarter for the first time in more than two years, highlighting the impact outsized US tariffs had before officials secured a trade deal last week. Gross domestic product adjusted for large sport events shrank 0.5 percent from the previous three months, according to a first government estimate published on Monday. That compares with an increase of 0.1 percent in the April-June period and is much worse than the 0.1 percent drop predicted by economists in a Bloomberg survey. The contraction in Switzerland's economy is attributed to the US tariffs imposed on Swiss goods, which led to a decline in exports. "The tariffs had a significant impact on our exports, particularly in the manufacturing sector," said Ursula Schneider, an economist at the Swiss National Bank. "We had anticipated a decline in exports, but the magnitude of the decline was greater than expected." The US tariffs, which were imposed in response to Switzerland's trade practices, had been a major concern for the Swiss government. The tariffs affected a range of Swiss goods, including watches, chocolate, and machinery. The Swiss government had been working to negotiate a trade deal with the US, and officials announced a deal last week that would eliminate the tariffs. The contraction in Switzerland's economy is a significant development, as it marks the first time the country's economy has contracted since 2023. The decline in GDP is also a concern for the Swiss government, which has been working to maintain economic growth. "We are concerned about the impact of the tariffs on our economy, and we will continue to work with the US government to resolve this issue," said a spokesperson for the Swiss government. The contraction in Switzerland's economy is also a reminder of the global economic challenges facing countries around the world. The US tariffs have had a significant impact on the global economy, and the contraction in Switzerland's economy is a symptom of a broader economic trend. "The US tariffs have had a ripple effect on the global economy, and we are seeing the impact of those tariffs in countries around the world," said a spokesperson for the International Monetary Fund. The current status of the Swiss economy is uncertain, and the government will continue to monitor the situation. The Swiss National Bank has announced that it will take steps to mitigate the impact of the tariffs on the economy. The government has also announced plans to provide support to affected businesses and workers. In conclusion, the contraction in Switzerland's economy is a significant development that highlights the impact of US tariffs on the global economy. The Swiss government will continue to work to resolve the issue and mitigate the impact of the tariffs on the economy.