Swiss tensions extend as the clock marks the deadline of US rates.

Tensions and fears are exhausted in Switzerland, since the deadline to reach a commercial agreement with the United States is coming just a few days away.

Without an agreement, Switzerland faces 39% of tariffs in their assets imported to the US, after it was affected with one of the newest rates under the last commercial policy change of the president of the United States, last week. The highest duty surprised many, since the generalized reports had previously suggested that a commercial agreement was close, and only missed Trump’s signature.

During the weekend, reports arose that the highest tariffs followed an unpleasant Thursday phone call among Swiss President Karin Keller-Sutter and Trump, that Swiss officials rejected, according to Reuters. When CNBC asked for comments, a Swiss government spokesman pointed out the publication of Keller-Sutter’s social networks after the call, which said that no agreement had been reached during the conversation.

In a statement on Monday, the Swiss government said it would continue its negotiations with the United States, even beyond the current deadline of August 7 if necessary.

He said he would seek to present a “more attractive offer” of the White House, taking into account the concerns of the United States, and that he had “developed new approaches to discussions” related to his contacts in the business world. He also said that he was currently not considering countermeasures.

The Swiss actions, which slid on Monday when the stock markets reopened from a national holiday, reduced losses in the afternoon agreements. The blue chip SMI index was 0.4% lower at 2 PM in London, recovering an earlier fall of around 1.7%.

In other places, the United States commercial representative, Jamieson Greer, presumed the hopes of a wave of imminent trade agreements, telling CBS News in an interview recorded on Friday that he did not expect the latest rates to be negotiated lower in the next few days, and that “these rates are well established.”

Industry groups and business leaders have increased the alarm of possible consequences for companies, which could include massive losses.

“It was much more than a surprise. We were all shocked,” said Jan Atteteslander, head of the international relations of the department and member of the Executive Board of Economiesuisse, told Carolin Roth on Monday and Ritika Gupta of CNBC in “Europe Early Edition.”

It would be difficult for Swiss companies to compensate for the impact of a 39%tariff, Atheslander said. “Such a high rate for many companies will simply reduce trade, and we are convinced that an agreement is even better for both parties than just cutting trade.”

He added that “there is no substitute for the United States” in terms of export markets, despite the fact that Switzerlands prioritize the diversification and Swiss companies that find success throughout the world.

Key Swiss exports include chemical and pharmaceuticals, watches and jewels, gold, chocolate and electronics.

UBS analysts said Friday that the direct impact on the general market of Swiss capital of the new tasks would be “negative, but not destructive.” They marked that the worse successful companies would include watches and machinery manufacturers, some medtech companies and smaller companies that depend more on exports.

Fears on the Swiss economic perspective have also emerged in a scenario without treatment.

Gianluigi Mandruzzato, a senior economist of EFG Asset Management, said on Monday of the “Early Edition of Europe” of CNBC that the risk of a Swiss recession had increased after the announcement, with US export tariffs that will affect approximately 10% of the economy.

The encumbrances would also exert deflationary pressure on the economy and, therefore, in the Swiss National Bank, which has already reduced interest rates to zero to avoid weak inflation and the strength of the Swiss Frenchman, Mandruzzato added.

While business leaders expect a Swiss-United States agreement to be reached on time, there is currently a lot of uncertainty, according to Atteteslander de Economiesuisse.

While the Swiss government was working on a new offer, “it is totally open at this time,” he said.

It is still “very difficult to know” if the government can negotiate a better treatment that the current rate of 39% before the deadline, Mandruzzato said, with possible negotiation tools that include higher purchases of American energy or more direct investment by Swiss companies in the United States.

“It seems that commercial negotiations with the United States eventually reduce to what Donald Trump prefers,” said Mandruzzato, and added that it was also difficult to evaluate what could be the final negotiation points.

– Carolin Roth of CNBC and Ritika Gupta contributed to this report.