UBS CEO Sergio Ermotti stated at a panel during the «Finanz’25» investor fair on Thursday in Zurich that the tariffs imposed by the Trump administration on imports into the U.S. will also indirectly affect UBS.

Instead of calling it a «Liberation Day,» as President Trump did, or a «Recession Day,» as some market commentators dubbed it, Ermotti said it should rather be called a «Day of Uncertainty.»

The major bank UBS would only be indirectly affected by the tariffs. «The likelihood that we will see increased volatility in the coming weeks is high,» said the bank chief.

He added that it remains to be seen what will happen in the coming weeks and months. «We expect there to be resistance within the U.S. itself — whether through courts or political processes — against the tariffs. That will also have economic consequences for the U.S.»

Lengthy Negotiation Phase Expected

«We anticipate that about half of the affected countries will find solutions and reach compromises with the U.S., thereby gaining relief,» Ermotti said. Much will depend on how these countries respond with countermeasures and how that will affect inflation, which is already above central bank targets in some economies.

«The consequences for the global economy are quite significant,» he noted. This will be felt in investment activity and will also impact the banking business, for example in the M&A or IPO pipeline.

When asked by moderator Dirk Schütz whether the 32 percent tariffs imposed on Switzerland — higher than the EU’s 20 percent — were justified, Ermotti declined to comment.

«Well Equipped to Handle It»

Ermotti explained the negative stock reaction at UBS by the correlation between banking and economic developments. «Financial services are not directly affected, and we have a strong presence in the U.S.» However, if the Swiss economy or that of neighboring countries suffers, UBS would inevitably feel the effects.

«Over the past years, we’ve grown used to dealing with crises. That has almost become the new normal. We are well equipped to handle this as well.»

Here are some impressions from Finanz'25:

Photos: finews.ch