The trade surplus grew in June to 5.79 billion Swiss Francs from a revised 4.01 billion in May, as chemical and pharmaceutical product exports bounced back.

The sector, which makes up about half of Swiss exports, sent 12.8 billion Francs worth of products outside its borders in June, up from 11.15 billion Francs in May, an increase of 14.8 percent. It's possible that businesses increased orders in June before US tariffs were scheduled to take effect in July. They've now been pushed to an August 1 deadline.

Exports to the United States rose in June to 4.02 billion Francs from 3.17 billion in May, an increase of 26.9 percent, following a 43.8 percent decline in May. Imports were relatively stable from the US, up 0.2 percent to 1.15 billion Francs.

The European Union received 12.80 billion Francs worth of Swiss goods in June, up 8.6 percent from 11.79 billion in May. Switzerland imported 13.57 billion Francs from the bloc, a decline of 2.4 percent, leaving a deficit of 774 million.

With a strong Swiss Franc, foreign goods are comparatively cheap for Switzerland, and it's keeping imported inflation at bay. The uncertain nature of US tariff policy could be prompting businesses to be opportunistic in their procurement.

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.