Trump's Tariffs Expose Weakness Of Switzerland's Economic Independence

(MENAFN- Swissinfo) It's not often that Switzerland finds itself at the sharp end of a global trade dispute. Even less often is it singled out with punitive action from a major trading partner. But this month, the US imposed a 39% tariff on most Swiss goods after a seven-day grace period lapsed. This content was published on August 12, 2025 - 08:48 8 minutes Mercedes Ruehl, Financial Times

It is a rate more than double that of the one levied by the Trump administration on the EU, and far steeper than those applied to the UK or Canada. In fact, it is the highest tariff on any developed country.

Recriminations and deliberations are now sweeping Switzerland as the government plots its next move. Last week, Bern vowed to continue discussions with Washington.

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It is rare to have so much international news about this small, export-reliant country of nine million people – especially on trade.

The surprise wasn't that the US took action. Few foreign partners have escaped the levies driving President Donald Trump's economic agenda. Switzerland, having a CHF48.5 billion ($60 billion) goods surplus with the US in 2024 and importing limited American goods in return, had long been a target.

But few in Bern expected the severity of the outcome: a flat 39% tariff across nearly all product groups, with only a narrow band of exemptions. Because of those carve-outs – particularly for gold and pharmaceuticals – Switzerland faces an effective average tariff of slightly more than 12%. But key exports such as watches, machinery, industrial tools and chocolate were affected immediately.

Even the exceptions are unclear. Gold was meant to be one such export mostly exempted. But last week the Financial Times reported that the US imposed tariffs on imports of 1kg gold bars, in a move that dealt a fresh blow to Switzerland, the world's largest refining hub.

More More US tariffs reportedly now also apply to Swiss gold bars

This content was published on Aug 8, 2025 Another trade blow for Switzerland: gold bars are now also subject to 39% US tariffs, the Financial Times reports.

Read more: US tariffs reportedly now also apply to Swiss gold bar

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