Switzerland could see prices skyrocket from Trump's tariffs

Prices for the eponymous Swiss watches, Swiss chocolate and Swiss cheese could skyrocket in a week as a result of US President Donald Trump's trade war.

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Switzerland, home to some the world’s most recognizable luxury brands, now faces an upcoming 39% tariff from the US Industry groups on Friday warned that both Swiss companies and American consumers could pay the price.

Trump signed an executive order Thursday placing tariffs on many US trade partners - the next step in his trade agenda that will test the global economy and alliances - that's set to take effect next Thursday. The order applies to 66 countries, the European Union, Taiwan and the Falkland Islands.

In Switzerland, officials failed to reach a final agreement with the US after Trump initially threatened a 31% tariff in April. Swiss companies will now have one of the steepest export duties - only Laos, Myanmar and Syria had higher figures, at 40-41%. The 27-member EU bloc and Britain, meanwhile, negotiated 15% and 10% tariffs, respectively.

The Swiss government spent Friday - the country’s National Day - reeling from the news. Swiss President Karin Keller-Sutter said that the 39% figure was a surprise, because negotiators had hashed out a deal last month with the Trump administration that apparently wasn't approved by the American leader himself.