Sergio Ermotti Slams Tariffs, Rules Out Shrinking UBS
UBS CEO Sergio Ermotti struck a cautious note at the Day of the Swiss Economy hosted by Economiesuisse, warning that U.S. tariffs will weigh on Switzerland’s growth and fuel inflation. He firmly rejected calls for UBS to «shrink itself» in anticipation of tighter regulation.
Sergio Ermotti voiced «deep disappointment» at the tariffs imposed on Switzerland, according to «AWP». Speaking in Baden near Zurich at the annual meeting of Economiesuisse, he said the measures could hit the economy hard.
«We must prepare for challenging times,» Ermotti told the audience, adding that many of UBS’s clients are directly exposed to the tariffs.
«Less Bad» Is Not Good Enough
«When tariffs drop from 39 percent to 15 percent, that is not good news – it is simply less bad,» he said. Ermotti nevertheless expressed confidence that the Federal Council can negotiate lower duties.
On the regulatory debate in the Swiss capital Bern, Ermotti stressed that cutting UBS down to size is not the answer. According to news agency «Reuters», he expects a «reasonable solution» but was adamant: «Shrinking the bank is not a strategy.»
Business Leaders Call for Action
Economiesuisse President Christoph Mäder said Switzerland’s economy relies on a globally connected financial center and strong exports. With rising pressures, he urged a «collective effort» to ease the burden on businesses and bolster the country as a business hub.
Mäder welcomed the Federal Council’s decision to fast-track relief measures and called for costly projects still in the pipeline to be postponed.
Parmelin a No-Show
Federal Councillor Guy Parmelin, scheduled to speak at the event, canceled due to a last-minute trip to the U.S.
