Switzerland's tariff shock: The 39% U.S. hit no one saw coming

Switzerland is officially on holiday Friday for the country's national day. But many market watchershave been hauled back to their desks by news overnight that they have been hit with a 39% tariff rate by the White House.

That came as a shock to the Alpine nation. Indications in the Swiss press had been that the country was close to negotiating an outline deal similar to those struck by the European Union, the U.K. and Japan, which set baseline tariffs between 10% and 15%. Instead, it has received one of the highest rates of any country.

That is hugely significant, with the U.S. accounting for around a sixth of Switzerland's total exports. Businesses breathed a sigh of relief in April when the country swerved initial plans for a 31% tariff, being handed an interim 10% duty along with most of the world.