US Tariff Shock: Adding Up The Swiss Bill

(MENAFN- Swissinfo) Swiss exporters have been hit with a dramatic and unexpected tariff hike of up to 32% on the goods they sell in the United States. Companies, politicians and economists are scrambling to work out the exact cost for Switzerland. This content was published on April 4, 2025 - 15:21 6 minutes

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I write original and in-depth data-driven articles using my skills in data analysis and visualisation. I cover a wide array of topics, among which are Switzerland's place in global trade, climate change and demographics. Born and raised in France, I studied international relations in Lyon, then graduated from Lille journalism school in 2011. I have been living in Switzerland since 2012 and worked at RTS for eight years before joining SWI swissinfo in 2020.

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The consequences of sudden trade dislocations can trickle down to the person on the street in the shape of uncertain job security and the prices they pay for goods.

The imposition of such heavy trade taxes by the US have led to some sections of the Swiss economy to cry foul, particularly the watch making, precision machines and medical devices sectors.

But the ultimate cost of President Trump's tariffs will not come to light until the reaction of countries around the world is known.

The looming threat

The US has imposed much higher tariffs on Switzerland than on other countries in Europe. European Union exports face a 20% charge, Britain just 10% and Norway 16%.

The US calculations that underpin these rates (a response to perceived trade barriers against US goods) are hotly disputed by Switzerland and other countries. Nonetheless, Swiss exporters face the double whammy of increased tariffs and a competitive disadvantage with neighbouring countries.

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This means that smaller Swiss companies“face losing this market [the US] altogether”, warned the tech engineering and precision tools lobby group Swissmem. Manufacturers will also be hit by a separate 25% US tariff on car parts.

Nearly 17% of Swiss watch exports went to the US last year, making it the largest market by far. The US also absorbed 23% of exported Swiss medical devices.

“Export barriers not only jeopardise companies, but also jobs, innovation and security of supply,” said Adrian Hunn, director of Swiss Medtech.

Medicines have been spared US tariffs so far, but Trump has indicated that new export charges could be levied in the near future . The Swiss pharmaceutical industry provided nearly half of the value of Swiss exports to the US last year (CHF31.2 billion).

External Content What damage could this cause?

For smaller companies that rely on the US market, but don't have production facilities there, the US tariffs pose a major threat.

This could potentially have a negative impact on jobs in the coming months. Swissmem has called on the government to allow more workers to be put on state-subsidised shortened working hours.

Around a third of the 1,300 companies represented by the mechanical engineering lobby group Swissmechanic had already reduced the working hours of staff before the tariffs were announced.

The rate of unemployment in Switzerland at 2.9% is currently less of a problem than in neighbouring countries, such as Germany. The KOF Swiss Economic Institute last month predicted the jobless rate to peak at 3% this year, but this figure has yet to be updated since tariffs were announced.

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