Trump policy fuels fear Swiss stock market in a customs maelstrom - SMI off to a weak start
The Swiss stock market started the new week and the quarter finale with losses. The reason: fresh tariff concerns from the USA and the threat of a trade conflict are unsettling investors worldwide.
31.03.2025, 10:38
31.03.2025, 11:51
SDA
No time? blue News summarizes for you
- The European and Asian stock markets came under heavy pressure at the start of the week.
- This was triggered by growing uncertainty about US tariff policy under President Trump.
- The Swiss benchmark index SMI lost almost 1% on Monday morning, with ABB particularly affected with a price drop of 3.2%.
- A comprehensive tariff package from the US is expected on Wednesday, which may include far-reaching counter-tariffs and further unsettle the markets.
Continued tariff and economic worries put a damper on the European stock markets at the start of the week. The Swiss stock market also trended significantly lower in early trading on Monday, the last trading day of the first quarter.
According to Swiss traders, the market is still caught up in the US tariff vortex and is following the deep red cues from the USA and Asia. Uncertainty over US tariff policy and geopolitical developments are causing selling pressure across the board. Inflation fears and economic concerns have recently risen significantly on the markets due to the possible consequences of the aggressive tariff policy.
At around 9.40 a.m., the leading Swiss index SMI was trading 0.96 percent lower at 12,716.70 points. The SLI, which includes the 30 most important stocks, fell by 1.16 percent to 2050.01 points and the broad SPI by 0.82 percent to 16,956.16 points. 28 of the 30 SLI stocks fell.
The biggest drop was in the shares of technology group ABB (-3.2 percent or CHF 1.49). More than half of this was due to the dividend cut of CHF 0.90 per share.
Downhill in Asia too
Following new statements by US President Donald Trump, Asia had already seen a significant downturn - the Japanese Nikkei fell by almost 4 percent to its lowest level since September 2024.
US President Donald Trump plans to announce a large-scale tariff package on Wednesday. The car tariffs already announced could be just a foretaste of further special levies.
On Sunday, Trump told journalists on board the presidential aircraft Air Force One what can be expected on Wednesday - namely counter-tariffs on import duties from all countries. This clear statement then shocked the stock markets in the morning.
It was uncertain whether and how the EU would respond. It would probably be better to wait for what Trump called "Liberation Day", said one trader.
