USD/CHF holds gains near 0.8150 as Trump slaps 39% tariff on Swiss goods

• USD/CHF maintains its position as the Swiss Franc struggles following a 39% US tariff on imports from Switzerland.
• The Swiss government voiced deep regret that the final tariff decision differs substantially from the previous draft framework.
• The US Dollar rose as the Fed is expected to delay interest rate cuts until at least October.

USD/CHF holds ground after registering losses in the previous session, trading around 0.8130 during the early European hours on Friday. The pair appreciated as the Swiss Franc (CHF) faced challenges, driven by the US President Donald Trump's imposition of a 39% tariff, one of the highest rates globally, on Swiss goods. The newly imposed US tariff on Swiss goods surpasses the 31% rate initially proposed in April, dimming prospects for a negotiated agreement.

The Swiss government expressed "great regret," emphasizing that the final tariff "differs significantly" from the draft framework previously under discussion. President and Finance Minister Karin Keller-Sutter stated on X that she had a final conversation with Trump, who remains focused on reducing the US trade deficit of USD 38 billion with Switzerland last year.

US President Donald Trump signed an executive order on Thursday, imposing tariff rates on US trading partners set to go into effect on August 1. The order includes tariffs ranging from 10% to 41% on US imports from dozens of countries and foreign locations, including Canada, India, and Taiwan, after failing to reach trade deals deadline.

The USD/CHF pair also draws support as traders expect the US Federal Reserve (Fed) to delay interest rate cuts until at least October. This hawkish sentiment increased following the recent US Personal Consumption Expenditure (PCE) Price Index report suggested that price pressures would increase in the second half of this year. Traders await the United States (US) Nonfarm Payrolls (NFP) due later in the day.