Swiss Market Index (SMI) Suffers Significant Drop

The Swiss Market Index (SMI) experienced a dramatic fall, losing over 5% of its value in a single day. This downturn was largely attributed to the escalating trade tensions initiated by the United States, particularly targeting the pharmaceutical sector.

US Announces Major Tariffs on Pharmaceuticals

US President Donald Trump revealed plans to impose a "major tariff" on pharmaceuticals, a move that has sent shockwaves through the market. The announcement led to a widespread selloff, with Swiss pharmaceutical giants Novartis AG and Roche Holding AG seeing their shares drop by 6.97% and 6.08%, respectively.

Impact on Swiss Pharma Companies

The proposed tariffs have had an immediate effect on Switzerland's leading pharmaceutical companies, with both Novartis and Roche experiencing significant losses. The SMI's sharp decline reflects the market's nervous response to the potential for increased trade barriers.