Online reports, asset management company J. Karsten Junius, an analyst at Safra Sarasin Sustainable, said that although high U.S. trade tariffs have dealt a severe blow to the Swiss economy, the SNB is unlikely to drop interest rates below zero. The SNB cut its benchmark interest rate to zero in June, citing strong demand for the Swiss franc and offsetting headwinds for the country's main export products. These headwinds have increased as President Trump said he will unexpectedly impose a high 39% tariff on goods imported from Switzerland. But despite the tariff hit, the SNB is likely to be reluctant to reduce interest rates to negative values. Switzerland's inflation exceeded expectations, and the zero-interest-rate policy has stimulated economic activity. At the same time, further interest rate cuts would add fuel to U.S. accusations that the SNB interfered in the exchange rate.