USTR Greer to complete paperwork soon, recognizes trade deficit challenges with Switzerland
by VT Markets
/
Aug 1, 2025
USTR Greer said they will finish paperwork on several deals in the next few weeks or months.
Current tariff levels depend on trade deficits with the United States.
Challenges With Switzerland
Greer mentioned that working with Switzerland is complicated. The upcoming paperwork suggests we should watch for important announcements soon. This uncertainty indicates that major stock indices might experience more volatility. During the 2018-2019 trade disputes, similar announcements led to sudden, unpredictable market changes, which benefited long volatility strategies.
We now understand that tariff levels relate to trade deficits. Recent data from July 2025 shows that the U.S. trade deficit with the Eurozone grew by 4% compared to last year, making European exporters a likely target. Traders might want to consider bearish positions on European industrial stocks or buy puts on the Euro Stoxx 50 index.
The mention of the “challenging situation” with Switzerland brings attention to the Swiss Franc and the Swiss Market Index (SMI). While the U.S. typically enjoys a trade surplus with Switzerland—over $22 billion in 2024—the concerns likely involve non-tariff issues like currency value or financial services. Since June 2025, the Swiss Franc has strengthened against the dollar by 2.5%, suggesting there could be efforts to weaken it.
Focus On Targeted Volatility
Our strategy in the coming weeks should focus on targeted volatility. This involves using options to protect against or bet on policy announcements that affect specific regions. For example, combining a long volatility position on the S&P 500 with a targeted short on the Swiss Franc could capture the effects of broad uncertainty and a specific diplomatic issue.
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by VT Markets
Aug 1, 2025
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