Switzerland has found itself on the receiving end of a harsh trade decision from President Donald Trump, who recently imposed a 32% tariff on Swiss exports to the United States.
That’s despite the fact that Switzerland hasn’t had tariffs on U.S. industrial products since 2024.
The move shocked Swiss officials, who described the decision as “incomprehensible.”
President and Finance Minister Karin Keller-Sutter said she regretted that the U.S. was “turning further away from free trade and a rules-based trade order.”
Higher Tariff Than the EU or UK
The 32% rate is the highest imposed on any European country, even surpassing the 20% slapped on the European Union and the 10% on Britain and Norway.
Swiss leaders had long believed their country’s close economic ties to the U.S. would protect it from such a blow.
Switzerland is the sixth-largest foreign investor in the U.S., with 350 billion Swiss francs invested and nearly half a million jobs created by Swiss companies.
“Just the other day, I was talking to a CEO of a major company who told me they’re in the process of investing over a billion dollars in the United States,” said Economy Minister Guy Parmelin.
“So there’s also a risk this will put the brakes on certain investments.”
No Plans to Retaliate
Despite the impact, Switzerland is staying calm. Officials have ruled out any countermeasures.
“We are disappointed, but escalation is not in Switzerland’s interest,” Keller-Sutter said at a press conference.
She added that Switzerland would stay in close contact with the European Union and discuss next steps together.
The two sectors hit hardest so far are Swiss watchmaking and precision instruments. The pharmaceutical industry, which accounts for nearly half of Swiss exports to the U.S., has been spared for now, but it’s unclear for how long.
Swiss Companies Feeling the Pressure
According to a survey by the business group Economiesuisse, nearly half of Swiss firms expect the tariffs to seriously hurt their business. Another 27% foresee a smaller impact, while the rest say they’ll be unaffected.
Most companies haven’t made any major changes yet but are looking into options like rerouting products through countries with lower tariffs, passing costs on to U.S. buyers, or expanding into other markets.
Economiesuisse, according to Reuters, called the tariffs “harmful and unjustified,” noting that many companies were blindsided by the decision.
Swiss officials are planning to travel to Washington later this month to raise their concerns directly with U.S. trade representatives.
But for now, Switzerland is sticking to its neutral stance, hoping that diplomacy and economic logic will eventually prevail.