One country is clashing with the U.S., the other racing to appease Washington. Both approaches are being tested ahead of a looming deadline for trade deals.

Swiss officials and business leaders reacted with shock and confusion after the president’s executive order imposing a 39% tariff—a higher rate than all but three nations. The reason for it? A skyrocketing trade imbalance.

The U.S. hit Switzerland with a 39% tariff rate last week after Trump’s August 1 deadline to strike a trade deal expired.