Tariff shock from the USA: threat to the Swiss economy!

Tariff shock from the USA: threat to the Swiss economy!

Economic relations between the USA and Switzerland are currently experiencing a critical phase. On August 7, 2023, new tariffs of 39% on exports from Switzerland came into force, considered a serious blow to the export-oriented Swiss economy. The USA is Switzerland's second most important trading partner and the effects of the tariffs are already being felt. Experts warn of company bankruptcies and predict a possible decline in Switzerland's gross national product of up to 0.7%. These developments pose particular challenges for the approximately 66,000 commuters from South Baden who work in Switzerland.

The pharmaceutical industry, which has been stable in the past, is exempt from the new tariffs. Still, the industry faces increasing pressure from demands for lower drug prices in the United States. US President Trump has also threatened exorbitant tariffs of up to 250% on medicines and medical devices. Despite these challenges, leading companies such as Roche and Novartis plan to increase production in the US to meet current trading conditions. Roche is investing $50 billion in the US and emphasizes that these investments will not have a negative impact on employees in Switzerland.

Reactions of the Swiss economy

The new tariffs have particularly affected export-oriented companies in the Basel cantons. Sectors such as mechanical engineering, medical technology and the production of precision instruments face enormous challenges. A survey of 20 exporting companies shows that the majority want to remain active in the US market despite the new tariffs, although some are considering moving to other markets. This uncertainty could increase Switzerland's willingness to bind itself more closely to the EU in order to find more reliable trading partners.

Some Swiss companies have already set up European subsidiaries to avoid US tariffs. The business association Economiesuisse calls for closer cooperation with the EU and emphasizes the need for Switzerland to be recognized as a reliable partner in Europe. EU parliamentarian Andreas Schwab also pointed out that Switzerland urgently needs a stable partner in Europe.

The US economy in context

The economic tensions between the USA and Switzerland take place against the backdrop of an extremely dynamic US economy. The United States operates as a federal presidential republic and has the largest economy in the world, with an estimated gross domestic product (GDP) of approximately $30.507 trillion in 2025. This economic strength is due in part to the innovation and competitiveness of U.S. industry, but is also characterized by significant social inequalities.

With a population of over 340 million people and an area of ​​9.83 million square kilometers, the USA is not only the third largest country in the world, but also culturally diverse. U.S. society is heavily influenced by immigration, and the country has the largest Christian population in the world, as well as significant Jewish, Muslim, Buddhist and Hindu communities. Despite its challenges and population differences, the U.S. economy remains a critical global player.

Given the current trade conflicts, it becomes clear how closely the fates of these two countries are linked. The Swiss economy may need to adapt to meet the demands of a changing global market while the U.S. continues to operate as an economic giant.