Trump between free trade and tariffs: Uncertainty for Switzerland is growing!

Trump between free trade and tariffs: Uncertainty for Switzerland is growing!

On April 2, 2025, US President Donald Trump announced the introduction of punitive tariffs on exports from Switzerland to the USA, which could reach an alarming 31 percent. This drastic measure has caused concern among Swiss business representatives. The Economiesuisse organization in particular described the tariffs as “harmful and unfounded” and warned of the serious burdens that this trade policy escalation could have on the Swiss export industry. Given a less stringent tariff of just 20 percent imposed on the EU, the competitiveness of the Swiss tech industry is further threatened. Jan Atteslander from Economiesuisse called for a quick negotiated solution with the US government to defuse the situation.

The U.S. trade deficit is the reason tariffs are calculated, and uncertainty about the future global economy has increased since Trump took office. The transition period for the announced tariffs ends on July 9, 2025, while the Swiss government remains optimistic that tariffs can be kept at 10 percent until then, as long as negotiations with the USA continue. At a meeting of the Groupe de liaison USA, some representatives expressed optimism while others remained skeptical. According to Seco director Helene Budliger Artieda, the Federal Council plans to immediately reach a binding deal with the USA.

Reactions of the Swiss industry

The high tariffs are seen as a significant blow to the Swiss tech industry. Jean-Philippe Kohl from Swissmem explained that companies cannot absorb the burden of high tariffs with their margins. The tech and machinery industry is extremely disappointed with the level of tariffs, as Switzerland has lifted its industrial tariffs. The pharmaceutical industry, which plays an important economic role with around 60 percent of exports to the USA, is also demanding binding commitments to avoid tariffs on medicines. Given a “zero for zero” agreement concluded in 1994 that eliminated tariffs on pharmaceutical products, it remains unclear to what extent these products will be affected by the tariffs.

In this precarious situation, Swiss Medtech is demanding that the Federal Council release all FDA-approved products in Switzerland in order to reduce the influence of customs. Rahul Sahgal of the Swiss-American Chamber of Commerce noted that more clarity is needed on the criteria for lifting the tariffs. Even if uncertainty remains about the classification of pharmaceutical products, the coming weeks and the upcoming negotiations will be crucial in limiting the negative effects on the Swiss economy.