Switzerland Reels as US Imposes 39% Tariffs, Highest in Europe
Switzerland has been hit with a 39% US tariff on its exports, the steepest in Europe and the fourth highest globally, sparking confusion and outrage across the country.
The shock decision was announced just hours before the 1 August deadline, despite last-minute talks between Swiss President Karin Keller-Sutter and US President Donald Trump. Until recently, Swiss officials had been optimistic about securing a far lower tariff rate – around 10% – after a high-profile meeting in Geneva between US and Chinese officials, which Switzerland helped broker.
Instead, the tariffs have been set even higher than the 31% rate previously threatened, dashing hopes of a trade deal similar to that secured by the UK.
Trade Deficit at the Heart of the Dispute
Trump has long argued that countries running a trade surplus with the US are taking advantage of American workers. In 2024, Switzerland’s goods trade surplus with the US reached $47.4bn, driven by exports of pharmaceuticals, gold jewellery, watches, and machine tools.
Swiss officials note that when services are included, the deficit falls to $22bn, but this was disregarded by Washington.
To appease the US, Switzerland had already eliminated tariffs on American industrial goods, and major firms such as Nestlé and Novartis pledged multi-billion-dollar investments in US plants. Switzerland is already the sixth-largest foreign investor in the US, supporting an estimated 400,000 American jobs.
Despite these concessions, efforts to offset the deficit proved insufficient. Analysts say Trump is more interested in big trade “wins” than maintaining long-term partnerships, and Switzerland simply lacks the scale to be prioritised.
Businesses Fear Job Losses
Swiss industry groups warned of significant job losses if the tariffs remain. Jan Atteslander, head of foreign trade at EconomieSuisse, stressed the need for “reliable relations with the United States” to protect one of Switzerland’s most important export markets.
There is a narrow window to renegotiate before the tariffs take effect on 7 August, but options appear limited. Some have suggested retaliatory measures, such as reciprocal tariffs or even cancelling Switzerland’s order for US F-35 fighter jets.
National Day Overshadowed by Anger
The announcement coincided with Switzerland’s National Day celebrations, usually marked by patriotic speeches and festivities. Instead, President Keller-Sutter admitted that while talks with the US had been cordial, Trump’s insistence on addressing the trade deficit remained “the obstacle”.
Local media outlet Blick described the tariffs as Switzerland’s biggest setback since the 1515 Battle of Marignano.
While frustration is high, some commentators argue that Switzerland’s resilience and innovation will help it weather the shock, just as it has overcome previous economic challenges.
