Swiss manufacturers warned on Friday that tens of thousands of jobs were at risk after U.S. President Donald Trump hit them with one of the highest tariff rates in his global trade reset, even if there was some relief for now for the key drugs sector.

The Swiss government said Friday it would negotiate with the United States to try to avoid the tough 39-percent US tariff rate that would harm key industries.

President Donald Trump has said that tariffs won’t lead to higher prices. But the United States economy seems to disagree: Inflation, which has remained fairly tame, is slowly creeping up because of tariffs.

After Canada failed to strike a trade deal with Washington, the president raised tariffs on some Canadian exports this week.

On Thursday, Donald Trump announced sweeping new tariffs against U.S. trading partners that will go into effect next week. The announcement came on the same day that an appeals court grappled with the question of whether Trump’s tariffs are even legal.

President Donald Trump continues to face questions over his administration's handling of the Jeffrey Epstein files and his relationship with the accused sex trafficker. The president on Thursday will have lunch with Vice President JD Vance and sign an executive order in the Oval Office.