Are US Tariffs Causing Major Strain on Switzerland's Export Economy?
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Synopsis
US tariffs are putting Switzerland's export-driven economy under enormous pressure. The Swiss government is actively seeking to negotiate a reduction of the hefty 39% tariffs. As key industries voice alarm, the economic impact could be severe, affecting jobs and the broader economy. What does this mean for Swiss exports in the future?
Key Takeaways
- The US has imposed a 39% tariff on Swiss exports.
- Almost 60% of Swiss exports to the US are affected.
- Swiss industries warn of potential job losses and economic slowdown.
- The Swiss government is negotiating with the US to reduce tariffs.
- Tariffs are impacting key sectors like chemicals and pharmaceuticals.
Geneva, Aug 8 (NationPress) The US tariffs impose “a significant burden” on Switzerland's export-driven economy, according to the Swiss government, which is committed to ongoing negotiations with the US to mitigate the 39 percent additional tariffs that took effect Thursday.
This decision followed a visit to the United States by a Swiss delegation from Tuesday to Wednesday, led by President Karin Keller-Sutter and Vice President Guy Parmelin, as stated by the Federal Council.
The 39 percent tariff rate, introduced by US President Donald Trump on July 31, ranks among the highest worldwide and exceeds the 31 percent rate initially threatened by Trump in early April, reported Xinhua news agency.
Almost 60 percent of Swiss exports to the US are affected by these new tariffs, which are considered “particularly severe” compared to other US trading partners like the European Union and Britain. The statement emphasized that Switzerland is not contemplating tariff countermeasures due to concerns about “additional economic costs.”
According to Swiss customs data, the US has been Switzerland’s largest export market since 2021, with Swiss exports to the US accounting for 18.6 percent of the country’s overall exports in 2024.
The US also remains the primary market for key Swiss industries such as chemicals, pharmaceuticals, watchmaking, and precision instruments in 2024.
The new tariffs have sparked backlash and worries across the nation.
Swissmem, a Zurich-based association for Switzerland's mechanical and electrical engineering (MEM) industries, stated on Thursday that the “nightmare scenario” has come true, urging the government to take swift action.
It warned that if the tariffs persist, Swiss tech exports to the US could be halted.
In a prior statement, it expressed that the tariffs would severely impact the economy and jeopardize tens of thousands of jobs.
Additionally, other industry organizations have condemned the US tariffs as “hazardous” and “unwarranted.”
Economiesuisse, an umbrella group for the Swiss business sector, asserted that there is “no justification or understandable rationale” for Switzerland facing one of the highest tariff rates globally.
The tariffs create a “very serious strain” on Swiss export firms, it noted.
The Swiss government previously expressed “deep regret” regarding the US's intention to impose unilateral additional tariffs despite the progress achieved in bilateral discussions.
It pointed out that the tariff rate announced by Trump diverges “significantly” from the draft joint statement that Swiss authorities approved on July 4 after months of negotiations.
Point of View
It is crucial to acknowledge the complexities of international trade relationships. The Swiss government must navigate these challenging waters while safeguarding the interests of its economy. The unilateral imposition of tariffs by the US highlights the need for continued dialogue and negotiation to avoid further economic strain.
NationPress
19/08/2025
Frequently Asked Questions
How are the US tariffs affecting Swiss exports?
The US tariffs are imposing a significant burden on Switzerland's export economy, with nearly 60% of Swiss exports to the US facing new tariffs. This could potentially halt exports and impact thousands of jobs.
What is the current tariff rate imposed on Switzerland by the US?
The current tariff rate imposed on Switzerland is 39%, which is one of the highest globally and has raised concerns among Swiss industries.
Which sectors are most affected by the tariffs?
Key sectors affected include chemicals, pharmaceuticals, watchmaking, and precision instruments, which are vital to Switzerland's export economy.
What is the Swiss government's response to the tariffs?
The Swiss government has expressed deep regret over the tariffs and is committed to ongoing negotiations with the US to reduce the additional tariffs.
Why is Switzerland not considering countermeasures against the US tariffs?
Switzerland is refraining from considering countermeasures due to fears of incurring additional costs that could further strain its economy.
