The United States has imposed additional tariffs of 10 percent on imports. Countries with a surplus in goods trade will pay more. The tariffs for Switzerland are the highest among all Organisation for Economic Co-operation and Development (OECD) countries, reaching 31 percent.
Editor's note: This article has been updated with new information regarding a temporary tariff reprieve for Switzerland. See "Update on tariff implementation" section at the end of the article.
Trump administration's protectionist measures: context and objectives
US President Donald Trump imposed additional tariffs amounting to 10 percent on the majority of imports from outside of North America on April 2. Several product categories are exempted, including pharmaceuticals, which are of vital importance for Switzerland.
The tariffs are higher for imports from countries with a trade surplus with the United States. According to an announcement from the Office of the United States Trade Representative (USTR), the aim is to achieve a trade balance.
Tariff comparison among OECD countries
Tariffs on imports from Switzerland are set to increase by 31 percent, exceeding the level of all other OECD members. Korea follows with 25 percent, Japan with 24 percent, and the European Union with 20 percent. However, tariffs on imports from Liechtenstein will rise even higher to 37 percent.
Switzerland-US trade relations: key figures and imbalances
The United States is Switzerland's single most important trade partner, even ahead of Germany, and ranks second after the EU as a whole. According to external trade statistics, in 2023, Switzerland exported goods to the USA worth 56.66 billion Swiss francs and imported American goods worth 29.73 billion Swiss francs, resulting in a Swiss surplus of 26.93 billion Swiss francs.
However, according to statistics from the State Secretariat for Economic Affairs (SECO), the United States achieved a surplus in services trade: the US exported services valued at 46.4 billion Swiss francs and imported services amounting to 26.4 billion Swiss francs in 2023, corresponding to an American surplus of 20.0 billion Swiss francs. This factor is not included in the American calculation of the new tariffs.
Official reactions and Swiss positions
US Trade Representative Jamieson Greer invited all countries to comment on the announced measures in advance. SECO explained in a letter to Greer's Deputy Assistant, Catherine Gibson, that Switzerland was one of the world's most open economies, had eliminated all industrial tariffs, and did not impose any digital tax. It also emphasized that Switzerland was the sixth largest investor in the United States.
Impact on bilateral trade relations
The Swiss-American Chamber of Commerce highlighted in its submission that Swiss companies employ 500,000 workers in the United States. It stated that maintaining and expanding this strong partnership was in the best interests of both countries.
Concerns from Swiss economic sectors
Economiesuisse called the new tariffs "damaging and unwarranted." In a statement, the umbrella organization for the economy called for the Federal Council, the Swiss government, and trade diplomacy to quickly find solutions at the negotiating table with the US government.
Scienceindustries described "considerable uncertainty" despite the exemption for pharmaceutical products. Stephan Mumenthaler, director of the association for pharmaceutical and chemical industries, commented in an announcement: "Significant tariff increases on life sciences and chemical products put the internationally intertwined value and supply chains under pressure."
Outlook and future actions
Swissmem expressed disappointment regarding the decision. The umbrella organization for machine manufacturers demanded in a statement that the Federal Council "act swiftly in order to at least reduce the tariffs and facilitate access to other markets.
Update on tariff implementation
In a recent Truth Social post, President Trump announced a 90-day pause on the implementation of reciprocal tariffs, including the 31% tariffs on Swiss goods. During this period, the baseline tariff of 10% will continue to apply.
This development provides temporary relief for Switzerland, reducing the tariff burden on Swiss exports to the U.S. from 31% to 10%, and placing Switzerland on equal footing with most other countries. The exception is China, where tariffs have been increased to 125%.
This article was produced in collaboration with Café Europe.
