Customs scandal shocks Switzerland - Shock sweeps through Switzerland as Zollhammer faces controversy
Switzerland is facing a significant challenge with the impending 39% tariff on its exports to the United States, set to take effect on August 7, 2025. This tariff, much higher than the initially proposed 31%, poses a serious burden for the Swiss economy, particularly for key export sectors such as pharmaceuticals, chemicals, watches, jewelry, and machinery.
The tariff is a result of the U.S. trade deficit with Switzerland, which totals approximately $38 billion, a target under the Trump administration's "Liberation Day" trade plan aimed at countries with large trade surpluses with the U.S. [1][4]
The Federal Council of Switzerland failed to negotiate an agreement to avoid or reduce the tariff, and while a WTO complaint is being considered, trade law experts believe a quick reversal is unlikely under the Trump administration. [1]
The economic impact on Switzerland could be severe, as the export sector is a major part of the Swiss economy. The tariff increases costs for Swiss companies exporting to the U.S., potentially leading to reduced U.S. sales, lower revenues, and negative effects on Swiss employment in export industries. [1][2]
Swiss political and business leaders express disillusionment and are exploring countermeasures, including potential retaliatory taxes. However, the Swiss government has not disclosed any plans to retaliate against these tariffs. [1]
The U.S. is by far the largest sales market for Swiss companies, with exports to the U.S. totaling 65.3 billion francs (70.2 billion euros) last year. [2] Germany follows as the second-largest market for Swiss exports, with 45.2 billion francs in exports. [2]
The tariff for the European Union is set at 15%, a significantly lower rate compared to the U.S. tariff. [2] Swissmechanic, the association of small and medium-sized enterprises in the metal, electrical, and machinery industry, is particularly concerned about the tariffs. [1]
Swiss companies have created around 400,000 jobs in the U.S., and the potential loss of these exports could potentially threaten the Swiss workplace. [2] The announcement was made by Federal President Karin Keller-Suter on the platform X. [3]
Despite the hoped-for agreement on a lower tariff rate not materializing, the Swiss government remains disappointed. No details have been provided about the potential impact of these tariffs on the Swiss economy or any plans for retaliation from the Swiss government. [1]
- The impending 39% tariff on Swiss exports to the United States, primarily affecting industries such as pharmaceuticals, machinery, and watches, may lead to increased costs for Swiss companies, potential reduced sales, decreased revenues, and negative effects on employment in export industries, as stated in trade law expert analyses and economic impact studies.
- In light of the U.S.'s significantly higher tariff rate (39%) compared to the European Union's tariff rate (15%), Swiss industry associations like Swissmechanic, representing small and medium-sized enterprises, are expressing concern about the potential impact on their businesses and employment in the metal, electrical, and machinery industry.
