Trump's protective duties catching Switzerland off guard: A look at the nation's reaction strategies - Impact of Trump's Tariffs on Switzerland: Response from the Swiss Nation
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Switzerland has expressed regret over the imposition of a 39% tariff on its goods exported to the United States, announced by President Donald Trump. The Swiss government and its trade negotiators were taken aback by the steep tariff, as they had received encouraging signals from US officials during ongoing trade discussions [2][3].
The new tariffs, the highest rate imposed on Swiss imports by the US, come after Switzerland failed to finalize a trade framework with the US by the August 1, 2025 deadline [4]. The Swiss government, led by President and Finance Minister Karin Keller-Sutter, continues to pursue dialogue to resolve the issue and has emphasized that the US trade deficit remains a central concern [2][3].
The impact of the tariffs on the Swiss economy is significant, especially because Switzerland's exports to the US include key sectors such as luxury watches and pharmaceuticals, which constitute substantial portions of the country's export economy. Shares of Swiss watch retailers like Watches of Switzerland Group have already fallen, reflecting investor concern about the tariffs. Meanwhile, companies in pharmaceuticals, such as Novartis and Roche, face uncertainty about how these tariffs will affect their US sales, though specific impacts remain unclear [1][4].
Moreover, the tariffs have coincided with a stronger Swiss franc, which complicates exporters’ competitiveness. The franc has weakened slightly in response to the tariff news but remains over 8% stronger than before the initial tariff announcement, putting further pressure on Swiss exporters [2].
High-quality food exports, including chocolate, worth around 10 billion francs per year, are also significant for Switzerland. However, the exact impact on these sectors is yet to be fully understood [1]. Economiesuisse, the business federation, considers the tariffs as a very serious burden for the Swiss economy [5]. Swiss companies, creating around 400,000 jobs in the USA, are threatened by the tariffs [6].
Swissmechanic, the industry association for small and medium-sized enterprises, is concerned about the impact of the tariffs on the Swiss workplace [7]. The White House published a new list of tariffs on Thursday [8]. Swiss media reacted with shock to the new tariffs, with the "Tages-Anzeiger" calling them a disaster for Switzerland [9]. The "Luzerner Zeitung" stated that reliable policy cannot be made with the USA at the moment [10].
In a phone call with US President Donald Trump last week, Keller-Sutter seemed to understand each other well [11]. However, the hoped-for agreement on a lower tariff rate did not materialize. The Swiss government, therefore, remains diplomatic but firm in pursuing resolution, while its exporters brace for considerable financial pressure from the unusually high tariffs [1][2][3][4][5][6][7][8][9][10][11].
| Aspect | Details | |--------------------|--------------------------------------------------------------| | Swiss response | Expressed regret, continuing negotiations, seeking solutions | | Political stance | Divided views on measures, but general criticism of tariffs | | Economic impact | Significant strain on watch exporters, uncertain pharmaceutical impact | | Currency effect | Swiss franc strong, undermining export competitiveness | | Food exports | High-quality food exports, including chocolate, under threat | | Job losses | Swiss companies in the USA threatened, potentially causing job losses | | Media reaction | Shock and criticism from Swiss media | | Diplomatic approach | Maintaining a diplomatic but firm stance in negotiations |
The European Parliament might find it necessary to offer support to Swiss industries affected by the imposed tariffs, given the potential job losses and economic strain that these tariffs could cause. Concurrently, the Commission shall be assisted by the European Parliament as they work towards fostering harmonious trade relations with the United States, considering the crucial role sports and recreational products—often manufactured and exported by Swiss companies—play within these negotiations.
