President Trump said he would impose 25% tariffs on global automotive imports to the U.S., making good on pledges to penalize foreign makers of cars and trucks. "What we're going to be doing is a 25% tariff on all cars not made in the U.S.," Trump said Wednesday in the Oval Office, appearing to dispel any chance of an exemption for countries such as Canada and Mexico, which have a free-trade agreement with the U.S. The U.S. will start collecting the auto tariffs on April 3, Trump said, the day after he is set to announce a broader slate of trade actions. Trump's so-called reciprocal tariffs, slated for that day, were originally planned to equalize U.S. tariffs with those charged by foreign nations, but Trump said Wednesday that the tariffs he plans to implement would likely be lower than that. The tariffs will cover finished automobiles and automotive parts, a senior administration official said. The administration had considered exempting auto parts from the tariffs. But parts that are compliant with the U.S.-Mexico-Canada Agreement will remain tariff-free until the Commerce Department "establishes a process to apply tariffs to their non-U.S. content," White House deputy press secretary Harrison Fields wrote online.

The Swiss stock market ended trading in the middle of the week with slight losses. The SMI shed 0.5 per cent to 12,954 points. Of the 20 SMI stocks, there were 14 losers and 6 gainers. A total of 19.23 (previously: 22.69) million shares were traded. Among individual stocks, the UBS share lost 0.1 per cent. The General Court of the European Union (EGC) has largely confirmed the fines imposed on UBS, Nomura and Unicredit by the European Commission in connection with allegations of a cartel for European government bonds. The EU Commission had imposed a fine totalling 371 million euros on UBS, Nomura and Unicredit in 2021. The banks can still take the case to the European Court of Justice (ECJ) - the EU's highest court - to prevent the fine. A UBS spokesman said that the bank would review the decision and consider whether to appeal. Sentiment was also weighed down by the losses of index heavyweights Roche and Novartis, dropping by 0.9 and 1.0 per cent respectively. Nestlé shares, on the other hand, were little changed. GAM shares slumped by 8.3 per cent following the annual figures. The company remained in the red in the past financial year and does not expect to return to profit until 2026.

Europe
The European stock markets fell back on Wednesday as uncertainty persisted over the new tariffs that US President Donald Trump intends to impose on the rest of the world on 2 April. The Stoxx Europe 600 index shed 0.7% to 548.7 points. In Paris, the CAC 40 and SBF 120 lost 1% and 0.9% respectively, while the DAX 40 was down 1.2% in Frankfurt. By contrast, the FTSE 100 closed up 0.3% in London. EMEIS (+9.6%), CLARIANE (+6.2%): traders were reassured by the initial conclusions of the plan to monitor care homes launched by the government after the Orpea (since renamed Emeis) scandal. ‘Investors are relieved. The conclusions of the plan confirm that the sector is once again ‘investable’,’ commented a Paris analyst. TOTALENERGIES (+1.8% to 60.41 euros): On Wednesday, Citi raised its recommendation on the energy producer's shares from ‘neutral’ to ‘buy’. The financial intermediary also lifted its target price for the stock from €61 to €70. According to various press reports, the Pirelli board is likely to exert pressure on Sinochem at today's meeting to reduce its stake in the Italian tyre manufacturer. Pirelli lost 2.9 per cent.

United States
New U.S. automotive tariff plans weighed on stocks Wednesday after the recent tech rebound had already begun to falter. The Nasdaq Composite led declines as tech stocks dragged on the market. Amazon, Alphabet and Meta Platforms all slipped more than 2%, with Nvidia, Tesla, and server manufacturer Super Micro Computer falling 5% or more. The S&P 500 was down about 1%, with the Dow industrials falling 0.3%, about 120 points. Automaker stocks came under pressure in the afternoon amid news that the White House would outline new tariffs affecting the industry. General Motors fell about 3%. Signs that the Trump administration had been narrowing its plans for tariffs boosted markets in recent days. However, investors remain on edge ahead of April 2, when the White House is expected to announce new levies. Consumer and business sentiment has also been dented by the White House’s rapidly evolving tariff threats, survey data has shown, though other indicators suggest the U.S. economy remains strong. Durable-goods orders rose 0.9% in February, new data showed Wednesday, blowing past expectations for a 1% decline. Among individual stocks, GameStop shares jumped 11%, after the videogame retailer and onetime meme stock reported results, and said it would start investing in bitcoin. Dollar Tree gained 3% after it struck a $1 billion deal to sell Family Dollar. Copper rose to a new record. New York-traded futures climbed 0.6% to $5.216 a pound after settling at a record on Tuesday. The White House has threatened tariffs on copper imports.

Asia
Asian stocks were mixed on Thursday. In Shanghai, the Composite Index was up 0.3 per cent. The Hang Seng Index in Hong Kong rose by 1.0 per cent. On the Tokyo stock exchange, the Nikkei 225 index fell by 1.0 per cent to 37,662 points. In Seoul, the Kospi lost 1.3 per cent. Shares in Japanese car manufacturers Toyota Motor, Honda and Nissan dropped by 2.8 per cent, 3.0 per cent and 2.1 per cent respectively. Hyundai Motor and Kia declined by 4.1 and 3.4 per cent respectively in Seoul. The punitive tariffs of 25 per cent on cars announced by US President Donald Trump the previous day weighed on the shares of Japanese and South Korean manufacturers in particular.

Bonds
The 10-year U.S. Treasury note yield gained 4 basis points (0.04 percentage points) to 4.36%.
The 2-year Treasury note yield increased by 5 basis points to 4.03%. The President of the Saint Louis Fed, Alberto Musalem, expressed concern on Wednesday about the risk of a lasting upturn in inflation as a result of the import taxes introduced by the Trump administration.

Analysis
Medacta price target: Morgan Stanley raises to CHF 146 (135) - Overweight
Target price Sandoz: Royal Bank of Canada upgraded to CHF 44 (42) - Sector Perform
Target price Phoenix Mecano: Research Partners increased to CHF 482 (466) - Hold

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