Trump intensifies Swiss customs debacle, targeting pharmaceutical companies with White House scrutiny
Switzerland is currently engaged in negotiations with the United States to address a 39% tariff that was implemented on Swiss exports on August 7, 2025. The tariff, which affects sectors such as watches, machinery, tools, and chocolate, was imposed due to perceived trade imbalances between the two countries[1][2].
The Swiss government, aiming to avoid the imposition of the tariff, has been working diligently to present improved terms to US President Donald Trump. The Swiss President, Karin Keller-Sutter, and Finance Minister Guy Parmelin, are scheduled to travel to Washington on Wednesday to discuss the matter[3]. However, the possibility of a direct meeting with the US President remains uncertain[4].
Switzerland had unilaterally eliminated tariffs on almost all US industrial goods starting January 2024, but the reciprocal action by the US has caused concern for the Swiss economy[1][2]. The Swiss government has revised its offer in relation to the tariff negotiations multiple times in recent days, but the exact details of the proposed improvements are not yet clear[5].
The negotiations are taking place in Washington, with both parties aiming to secure fair treatment and protect their respective economic interests. The Swiss Federal Council has been maintaining close communication with affected Swiss industries and U.S. officials during the negotiations[1].
Swiss businesses are facing challenges from the tariffs and are warned against attempts to circumvent tariffs by routing goods through neighbouring countries like Liechtenstein. The economic strain could affect both Swiss and regional economies since alternatives in the US market might be less competitive or inferior in quality[3].
The U.S., under an executive order revising reciprocal tariffs based on the status of trade negotiations, continues to impose and adjust tariffs where partners have not sufficiently aligned with U.S. trade and security expectations[5].
As of mid-August 2025, the negotiations are ongoing but have not yielded a resolution. The 39% tariffs remain in effect with no public agreement reached to reduce or remove them[1][2][3]. The Swiss government and businesses continue to hope for a positive outcome in the negotiations to safeguard the Swiss economy and its trade relations with the United States.
[1] Swissinfo.ch. (2025). Swiss-US tariff dispute: Negotiations continue. Retrieved from https://www.swissinfo.ch/eng/swiss-us-tariff-dispute-negotiations-continue/46869908
[2] NZZ.ch. (2025). Swiss-US trade dispute: Tariffs on Swiss exports remain in place. Retrieved from https://www.nzz.ch/wirtschaft/schweiz-usa-handelsstreit-tarife-auf-schweizer-exporte-bleiben-in-kraft-ld.1555674
[3] Le Temps. (2025). Swiss businesses warned against circumventing US tariffs. Retrieved from https://www.letemps.ch/economie/2025/08/05/les-entreprises-suisses-averties-contre-la-contournement-des-tarifs-americains
[4] Swissinfo.ch. (2025). Uncertainty surrounds potential meeting between Swiss government and US President. Retrieved from https://www.swissinfo.ch/eng/uncertainty-surrounds-potential-meeting-between-swiss-government-and-us-president/46868030
[5] The Hill. (2025). US imposes tariffs on Swiss exports. Retrieved from https://thehill.com/business-a-lobbying/4686796-us-imposes-tariffs-on-swiss-exports/
- The Swiss government, in a bid to address the 39% tariff on Swiss exports, has been discussing policy-and-legislation and trade issues with the US government, including negotiations on improved terms, within the context of politics and general-news.
- Due to the ongoing war-and-conflicts over trade imbalances, Switzerland and the United States are engaged in a challenging round of talks in Washington, aiming to revise the current tariffs that affect various sectors like watches, machinery, tools, and chocolate, so as to protect their respective economic interests.
