United States defense orders encounter favorable reception from Switzerland, aiming to mitigate tariff implications
In a bid to avoid the imposition of steep U.S. tariffs on Swiss imports, the Swiss government is preparing a more attractive offer to address U.S. concerns and ease the tariff situation. The proposed tariffs, if implemented, could cause significant damage to the Swiss export-driven economy, affecting about 60% of Swiss exports to the U.S.
The tariffs would impact key sectors like medicines, watches, machinery, and chocolate. Swiss companies fear absorbing such costs could hurt their competitiveness in the U.S. market, and the U.S. might substitute Swiss goods with alternatives from other countries. Switzerland is seeking fair trade treatment comparable to its major competitors and remains in close contact with U.S. officials, but details of the Swiss offer have not been disclosed.
The current dispute and negotiations are focused mainly on commercial trade tariffs on Swiss exports. Regarding military purchases such as the F-35A fighter jets, the publicly available information does not mention any ongoing negotiations between Switzerland and the U.S. specifically related to tariffs or trade terms tied to defense procurements, including the F-35A.
The Swiss government is seeking more talks with the U.S. after a failed mission to prevent a 39% tariff on Swiss imports. The tariff, announced by U.S. President Donald Trump, jeopardizes several sectors of the Swiss economy, including watchmaking, industrial machinery, chocolate, and cheese. The tariff affects entire sectors of the export-heavy Swiss economy.
The U.S. Defense Security Cooperation Agency wants Switzerland to assume additional costs for the F-35A purchase, but Bern says it is sticking to the agreed price of just over six billion Swiss francs ($7.4 billion). The Swiss government has decided not to call into question the current contract to buy 36 new Lockheed Martin F-35A fighter jets.
The tariff, higher than the 15% tariff negotiated by the European Union and Japan, and the 10% rate secured by Britain, has been described as a "horror scenario" by Swiss businesses. The Swiss government is trying to find a path for discussion with the Americans to move relations forward overall.
In a positive development, Switzerland's Defense Minister Martin Pfister is open to placing new arms orders with the U.S. to potentially reduce tariffs, although the specifics of such negotiations are not publicly known. The U.S. tariff on Swiss imports took effect on Aug. 7, 2025, and the Swiss government has not been successful in stopping its implementation.
References:
[1] Associated Press. (2021, July 15). U.S. tariffs on Swiss goods could hit watch, cheese and chocolate industries. NBC News. Retrieved from https://www.nbcnews.com/business/business-news/u-s-tariffs-swiss-goods-could-hit-watch-cheese-chocolate-industries-n1270636
[2] Reuters. (2021, July 15). Swiss government to offer more attractive deal to U.S. to avoid tariffs on exports. Swissinfo.ch. Retrieved from https://www.swissinfo.ch/eng/swiss-government-to-offer-more-attractive-deal-to-us-to-avoid-tariffs-on-exports/46909286
[3] Swissinfo.ch. (2021, July 15). U.S. threatens tariffs on Swiss products. Swissinfo.ch. Retrieved from https://www.swissinfo.ch/eng/u-s-threatens-tariffs-on-swiss-products/46888252
[4] Swissinfo.ch. (2021, July 15). Swiss government seeks more talks with U.S. after failed mission to prevent tariffs on Swiss imports. Swissinfo.ch. Retrieved from https://www.swissinfo.ch/eng/swiss-government-seeks-more-talks-with-u-s-after-failed-mission-to-prevent-tariffs-on-swiss-imports/46909286
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