Swiss Economic Slowdown and Rising Electric Vehicle Sales: This week, the global economic landscape reflected a mix of contrasting indicators.

Switzerland’s GDP posted weak growth in Q2 2025, coming in below market expectations.

New car sales in Europe jumped 5.9% in July, supported by strong demand for electric and hybrid vehicles,

marking the fastest growth pace in 15 months.

At the same time, Nvidia issued warnings over potential legal risks and added costs tied to the U.S.

President Donald Trump’s plan to impose a 15% levy on AI chip sales to China highlights

a mix of pressures and challenges for global markets in the second half of the year.

Contents
Switzerland’s GDP
European Car Sales
Nvidia

Switzerland’s GDP Records Weak Q2 Growth Below Market Expectations

Switzerland’s Federal Statistical Office (SECO) released its Q2 GDP data Thursday morning,

revealing a mixed performance compared to analysts’ forecasts.
The Swiss economy grew 1.2% year-over-year in Q2, versus expectations of 1.4% growth,

while Q1 growth was revised down from 2% to 1.8%.
Every quarter, GDP rose 0.1% in Q2, which aligned with market expectations,

while Q1 growth was revised from 0.5% to 0.4%.
>The data indicate a relative slowdown in growth momentum compared to the start of the year,

driven by external pressures such as the weakening European economy and declining exports,

raising questions about Switzerland’s ability to maintain stable growth in the second half of 2025.

European Car Sales Jump 5.9% in July with Strong Electric and Hybrid Demand.

According to the European Automobile Manufacturers Association (ACEA), in July,

European new car sales saw their fastest pace of growth in 15 months.

Increased registrations in Germany offset declines in the UK, France, and Italy.
Registrations rose 5.9% year-over-year to 1.09 million units, marking the strongest growth since April 2024.

The surge was fueled by a 52% jump in plug-in hybrid vehicles and a more-than-one-third increase in fully electric cars.
By manufacturer, Volkswagen Group and BMW Group each posted sales gains of about 11.6%, while Renault’s deliveries rose 8.8%.

In contrast, Stellantis sales slipped slightly by 1.1%.

In the EV sector, Tesla faced headwinds in the European market, with sales dropping 40%,

reducing its market share to just 0.8%.

Meanwhile, China’s BYD more than tripled its deliveries, boosting its share to 1.2%.

Nvidia Warns of Risks in Trump’s 15% AI Chip Levy Plan on China Sales.

Nvidia said that Donald Trump’s plan to impose a 15% levy on AI chip sales to China remains in early stages,

warning that it could carry legal risks and additional costs for the company.
CFO Colette Kress explained that the U.S. government has not finalized the mechanism for implementing these regulations,

adding that discussions are ongoing. She stated:

“If no clear regulation emerges, we have licenses in place, and we wouldn’t be required to pay 15%.”
Nvidia cautioned that such a levy could expose the company to legal action

and weaken its competitive position against firms not subject to these restrictions.
The proposal follows a White House plan to allow Nvidia and Advanced Micro Devices (AMD)

to re-enter the Chinese market, after AI chip sales to China were banned in April

On the condition that companies pay a levy to the U.S. government.

Swiss Economic Slowdown and Rising Electric Vehicle Sales

Swiss Economic Slowdown and Rising Electric Vehicle Sales

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