The trade surplus rose to a record 6.36 billion Swiss francs in April, up slightly from 6.20 billion in March. Exports fell 9.2 percent nominally to 25.23 billion, while imports contracted by 15.6 percent to 18.90 billion francs in April.

But the results on the surface mask deeper negative developments, particularly on trade with the United States which has imploded.

Within the major sectors, the chemical- and pharma sector saw exports fall by 2.99 billion francs to 14.47 billion, down 17.1 percent in nominal terms from the previous month which saw an increase of 23 percent. Imports fared even worse, falling 32.6 percent to 6.54 billion francs and wiping out a 30.3 percent gain in March.

Contrasting the March and April results suggest there was stockpiling ahead of tariffs imposed by the US which took full effect in April. Switzerland exported 3.19 billion less to the United States in April than it did in March, contracting 36.1 percent nominally. Imports fell 15.4 percent to 1.03 billion in April from 1.22 in March.

Switzerland's trade surplus fell to 4.89 billion in April from 7.89 billion in March.

The merchandise trade balance measures the difference between the total value of Swiss merchandise exports and imports. The focus is on the balance of trade in goods, excluding precious metals, gemstones, works of art and antiques. This is provided in unadjusted and seasonally adjusted measures for cash and volume.

Changes in the level of imports and exports along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect the value of the Swiss franc in the foreign exchange market. Switzerland's major trading partners include Germany, France, Italy and the United States. While Switzerland still exports large amounts of traditional products such as chocolate and watches, more than half of Swiss exports are in mechanical and electrical engineering and chemicals today. A positive trade balance indicates a trade surplus while a negative balance represents a trade deficit. Trade surpluses indicate that foreigners are buying more Swiss goods, which are typically paid for in Swiss Francs. This translates into greater demand for the currency and upward pressure on the value of the Franc. However, if the balance is a deficit, Swiss consumers are buying goods from trading partners which translates into higher demand for foreign currencies placing downward pressure on the value of the Franc.