U.S. visit by Swiss President aimed at preventing high tariffs
The United States has implemented a 39% tariff on a wide range of Swiss exports, effective from August 7, 2025. This includes watches and industrial products, following an executive order aimed at addressing trade imbalances [1][5].
The tariff, which is one of the highest among the economies affected by the new measures, has significant implications for Switzerland's economy. Swiss exporters in key sectors such as watchmaking, machinery, and tools may face substantial price hikes, potentially reducing their competitiveness [2].
Economists estimate that the tariff could lead to a decrease in Swiss economic growth, ranging between 0.3% and 1%, due to reduced export volumes and trade friction [2]. The move has also resulted in political and business pressure within Switzerland to resolve the tariff dispute, as it affects both large multinationals and smaller independent companies heavily reliant on U.S. sales [2].
Some uncertainty and market disruptions have arisen, such as panic over possible tariffs on Swiss gold exports, which were later clarified by the White House to likely not face tariffs [3].
In response, the Swiss government has unilaterally removed tariffs on industrial imports from the U.S. as of January 1, 2024, allowing over 99% of U.S. goods tariff-free entry into Switzerland [1]. The Swiss government is working to negotiate a trade deal and may present a more attractive offer to the U.S. to resolve the tariff imposition before it fully takes effect [1].
President Karin Keller-Sutter and Economy Minister Guy Parmelin are currently visiting Washington to discuss the tariff situation [4]. Nik Hayek, the head of watch firm Swatch, believes that President Trump wants to make a deal with Switzerland [6].
The U.S. market accounted for 18.6% of Switzerland's total exports last year [7]. Pharmaceuticals accounted for 60% of Swiss goods exports to the United States last year [8]. Swiss companies have urged the government to negotiate a lower tariff [9].
The Swiss government will issue a statement regarding any relevant developments for the public [10]. The aim of the visit is to present a more attractive offer to the United States, taking U.S. concerns into account [4]. The U.S. tariff on Swiss goods is a significant escalation in trade barriers, with possible consequences of slowed economic growth and increased political-strategic negotiations between the two countries [1][2][5].
References:
- The Local Switzerland
- Swissinfo
- Reuters
- Bloomberg
- CNN Business
- Financial Times
- Swiss Customs
- Swiss Federal Customs Administration
- Swiss Business Federation
- Swiss Federal Department of Foreign Affairs
- The tariff, enforced by the U.S. government, targets various Swiss industries such as finance, business, and general-news sectors, as key exports include watches, machinery, and tools.
- The high tariff on Swiss exports has steered Switzerland's economy towards stagnation, potentially impacting the nation's economic growth and creating uncertainties in the broader industry.
- Politicians, economists, and business leaders in Switzerland are advocating for a trade deal with the U.S. to prevent an escalation in trade barriers and resume the flow of goods, including in the finance and political sectors.
