SwitzerlandConsiders Trump's Proposed Tariff Increase Job Advertisement Implications
The United States has unexpectedly imposed a 39% tariff on Swiss products, marking a significant shift in bilateral trade relations. This move forms part of a broader policy to address "large and persistent annual U.S. goods trade deficits" and perceived unfair trade practices lacking reciprocity [1].
The tariff, authorized by Executive Order 14257 signed by President Trump in April 2025, took effect from August 7, 2025, impacting not only Switzerland but also countries like Canada and Taiwan [1]. The decision has raised concerns among Swiss investors and exporters, who may face increased costs, reduced demand, and potential supply chain disruptions [1].
In 2023, watches and jewelry, along with precious metals, made up 20 percent and 15 percent of Switzerland's exports to the USA, respectively. Pharmaceutical products, vitamins, and diagnostics accounted for around 57 percent of Switzerland's exports to the USA [2]. The tariff could significantly impact these industries, as well as machinery and electronics, which accounted for 8 percent of Switzerland's exports to the USA [2].
The Swiss government has expressed "great regret" over the U.S. tariffs and will continue to push for a negotiated solution [2]. Economiesuisse, the umbrella organization representing Swiss businesses, has urged the government to urgently seek a reduction in tariffs [2]. The Swiss Confederation ranks 5th in the world for products subject to the highest tariffs, behind Brazil, Syria, Laos, and Myanmar [4].
The U.S. tariff decision has been described as "obscure" in comparison to the EU and Great Britain [5]. Initial voices from the left wing suggest a stronger economic connection to the EU in light of Washington's unilateral action. However, the EU orientation is a sensitive topic in Swiss politics, dividing both the left and the right [5].
In May 2025, Swiss exports to North America plummeted by nearly 40 percent, with the watch and machinery industries, as well as manufacturers of precision instruments and food, being particularly affected [6]. The tariff exceeds the 10% rate that has been in effect since April and the internal worst-case scenario of 31% [6]. No agreement could be reached on the declaration of intent negotiated between Switzerland and the USA [6].
As Switzerland celebrates its National Day on August 1st, this tariff decision presents a challenge to the country's economy and its trade relations with the United States. The potential economic impacts include strained diplomatic ties, disrupted industries, and supply chain disruptions, among other issues [1].
- The sudden tariff imposed by the United States on Swiss products, a move considered part of its broader policy on politics and general-news related topics, such as trade imbalances and perceived unfair practices, has sparked concerns within Swiss industries and exporters, possibly impacting relations between the two countries significantly.
- The Swiss government's efforts to negotiate a solution to the tariff issue with the United States is a reflection of the importance of smooth and reciprocal trade relations, as the trade conflict could have far-reaching effects on Switzerland's economy, particularly on industries like watches, jewelry, pharmaceuticals, machinery, and electronics, which carry substantial weight in Swiss-U.S. trade.
