The Swiss National Bank said Thursday that tariffs on goods to the U.S. present a "major challenge" for exporters, with its economy set to take a hit.

The country has swallowed some of the highest duties imposed by President Donald Trump's administration, with a 39% tariff rate implemented in August. It came after a Swiss delegation led by the country's President Karin Keller-Sutter failed to secure a trade deal after meeting with Trump in Washington D.C.

"The U.S. tariffs present a major challenge for affected companies and are likely to dampen economic activity," Swiss National Bank Chairman Martin Schlegel said in a press conference following the central bank's latest interest rate decision.

"Against this backdrop, our monetary policy is also supporting economic development."

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