Swiss exports hit by 39% US tariffs

A sweeping 39 percent tariff on Swiss exports to the United States has rattled manufacturers and could reshape trade links.

In Switzerland hope turns to fury as Trump tariff nightmare begins

A new 39 percent tariff on a broad swath of Swiss exports to the United States took effect after failed talks with President Trump. Pharmaceuticals and gold are spared for now, but many other products face steep costs. Swiss exporters like Thermoplan, Netstal and Breitling are weighing options as supply chains, pricing and production plans come under pressure. Thermoplan relies heavily on the US market, with almost a third of its CHF355 million in sales coming from America, and most components produced in Switzerland. Some firms are considering moving parts of production to Germany or building US hubs, a move that would take years. In Bern, a collegial government struggles to reach quick decisions, a factor reporters and business leaders say slowed negotiations and left Swiss industry unprotected.

The immediate impact is clear: customers in the US are delaying orders, and some manufacturers are stockpiling components or shipments. The tariffs have already stirred talk of higher prices in luxury watches and other high-end goods, and some companies warn of slower growth or job losses if the regime endures. The episode also intensifies the debate about Switzerland’s path toward deeper ties with the European Union as diversification options grow more attractive.

The episode exposes a larger pattern: when a high-stakes tariff enters a small, export-dependent economy, a country with a tradition of measured diplomacy and precision manufacturing can feel exposed. The Swiss model values consensus and careful planning, but that approach can be a liability in a fast-moving dispute with a superpower. Firms that pride themselves on Swiss quality face a delicate balance between shielding prices and preserving the brand promise of Swiss Made. Looking ahead, Switzerland may lean more toward the EU to cushion exposure, and some companies may accelerate plans to spread risk across markets in Europe, Latin America, and Asia. The political lesson is blunt: in a world of cross-border supply chains, a single tariff regime can rewrite a country’s economic map overnight. The social risk is equally real, as price pressures and potential job losses could affect ordinary households and workers across sectors.

Highlights

Diplomacy and diversification will determine the next chapter for Swiss industry