EUR News
LAST UPDATE: August 1, 2025
Switzerland Slammed With 39% Tariff Rate in US Trade Blitz
The U.S. imposed a steep 39% tariff on Swiss imports—far higher than previously proposed—targeting luxury goods, machinery and non‑exempt exports (ウォール・ストリート・ジャーナル, AP News).
Insight
The punitive rate reflects U.S. targeting of Switzerland’s trade surplus and possible currency interventions; tough new barriers may disrupt key Swiss industries and intensify trade tensions.
Switzerland in ‘shock’ at 39% US tariff blow
Swiss officials expressed shock at the abrupt 39% U.S. tariff, warning of job losses in sectors like watches, chocolate and machinery; talks are ongoing ahead of the August 7 implementation (フィナンシャル・タイムズ, Reuters).
Insight
The scale of the tariff surge highlights the precariousness of Swiss-U.S. relations, and could trigger urgent Swiss diplomatic mobilization or retaliation measures.
Swiss government says U.S. tariffs of 39% do not apply to pharma sector
Switzerland clarified that pharmaceuticals—the backbone of its exports—are exempted from the punitive 39% U.S. tariff, preserving zero duty on this strategic sector (Reuters, Yahoo!ファイナンス).
Insight
Exempting pharma mitigates the worst economic impact, preserving a vital industry; politically, it shows U.S. selective targeting while allowing critical trade continuity.
Norway still aims for US trade agreement, minister says
Norwegian Trade Minister Cecilie Myrseth said Norway continues to pursue a U.S. trade agreement even after the U.S. imposed a 15% tariff on Norwegian imports (TradingView).
Insight
Norway’s persistence reflects strategic interest in reducing tariff burdens, and signals readiness to enter formal trade negotiations despite protective tariffs.
EU’s trade chief: Work continues after EU‑US framework trade agreement
EU Trade Chief Maroš Šefčovič said that while the EU-US deal establishing a 15% tariff cap gives exporters a “more competitive position,” negotiations remain ongoing (TradingView).
Insight
The framework deal offers temporary stability and predictability, yet continued talks signal that both sides seek further specificity and carve-outs for key sectors.
Hungary government to draw up plans to protect jobs after US‑EU trade deal
Hungary announced action plans to safeguard jobs and prevent factory closures after the EU-US trade deal introduced a 15% tariff on EU exports, including cars (Reuters).
Insight
Central European countries like Hungary face economic risks under the new tariff regime; protective measures will be crucial to avoid industrial decline and political fallout.
Kosovo to scrap 10% tariff on US imports, aiming to boost trade
Kosovo announced it will eliminate the 10% tariff on all U.S. imports, reducing duties to zero to foster trade and investment, with trade valued at €106 m in imports vs €39 m in exports in 2024 (Reuters)
Insight
Abolishing the tariff reflects Kosovo’s ambition to deepen economic ties with the U.S., potentially boosting imports, catalyzing investment, and signalling a pro‑business international posture.
UK factories edge closer to end of downturn, PMI suggests
The UK manufacturing PMI rose to 48.0 in July from 47.7 in June—the slowest contraction in months—with growth in consumer and intermediate goods, rising executive optimism, though job losses continued (Reuters, Reuters)
Insight
Despite remaining in contraction territory, manufacturing shows signs of bottoming out. Increased business confidence and output in select sectors may herald stabilization ahead of broader recovery.
Sweden’s July manufacturing PMI jumps to 54.2 points
The Swedish manufacturing PMI surged to 54.2 in July from 51.8 in June, indicating renewed expansion driven by stronger new orders and export demand (TradingView, MarketScreener)
Insight
A sharp pickup in PMI suggests Swedish factories are regaining momentum, underpinned by rising external demand, and positioning the sector for sustained growth.
Polish manufacturing contracts for third month; Czech, Hungarian PMIs stagnate
Poland’s PMI remained in contraction at 45.9 in July, while Czech PMI held at 49.7 and Hungary’s rose to 50.7—reflecting weak demand and cost pressures across Central Europe (TradingView, Reuters)
Insight
Persistent weakness in Poland and stagnation in Czechia and Hungary underscore fragile regional industrial conditions. Export demand is subdued, requiring strategic responses to support recovery.
Turkish manufacturing sector contracts further in July, PMI shows
Turkey’s PMI dropped to 45.9 in July from 46.7 in June, marking the sharpest contraction since October 2024, as weak demand and cost pressures weighed heavily (Reuters)
Insight
Deepening contraction indicates mounting macroeconomic challenges: inflation, weak demand, and currency volatility are squeezing industrial activity and employment.
