According to the German press, the Federal Council has summoned the president of the National Bank for a meeting. On the agenda are discussions about the Swiss National Bank’s currency interventions, which the United States views unfavorably.
The March 31 ultimatum passed without incident. Washington had set this date for Bern to conclude a trade agreement. Meanwhile, the Supreme Court’s decision, which overturned all tariffs imposed since April 2025 by Donald Trump, changed the situation. According to Guy Parmelin, the Minister of the Economy, an agreement is not expected to be reached quickly.
Nevertheless, the Federal Council is taking preemptive measures in response to the unpredictability of Donald Trump. According to the German press, Bern intends to meet with Martin Schlegel, the president of the Swiss National Bank, whose actions against the strong franc are under American scrutiny.
After the Supreme Court decision, the U.S. president retaliated by imposing several measures, starting with 10% tariffs on the entire world. The U.S. government also invoked “Section 301,” allowing it to take actions, including tariffs, against countries engaging in unfair trade practices. Investigations have been launched to demonstrate these practices against several countries, including Switzerland.
Washington reproaches Switzerland for its high trade surplus, a significant point of contention between the two countries for a year. The United States also suspects Switzerland and the SNB of weakening the franc to make exports cheaper and benefit its companies, which would be a form of currency manipulation. This accusation has been made repeatedly, placing the country under scrutiny and even accusing it of being a currency manipulator in 2020, like China.
The accusation was later withdrawn, but SNB interventions continue to be monitored. The SNB denies manipulating its currency, stating that currency purchases to weaken the franc are a monetary policy tool aimed at maintaining price stability. While a strong franc makes imports cheaper, it poses a risk of continuous price decline that could hinder the economy if consumers stop spending in anticipation of further price reductions.
Last year, the SNB intervened relatively little, buying 5.5 billion francs in foreign currencies, a relatively small amount compared to previous years. For example, in 2015, after removing the floor rate between the franc and the euro, it bought the equivalent of 86 billion francs in foreign currencies.
At the beginning of the year, Switzerland once again came under scrutiny by the U.S. Treasury. However, the SNB remains unfazed. Martin Schlegel even stated that the threat of being labeled a manipulator would not deter them from acting on the franc if the economic situation necessitates it.
Source: Mathilde Farine
