US tariffs cause shock and alarm among Swiss citizens, described as a nightmare or terrifying situation by some.
The Swiss government convened urgently on August 7, 2025, to address the severe impact of the 39% tariff imposed by the US on Swiss exports. This tariff, the highest on any developed country, affects products such as luxury watches and Nespresso capsules.
The economic impact on Switzerland is significant. Major negative impacts are expected on Swiss exports, domestic industries, and related economies like Liechtenstein. U.S. consumers might turn to less preferred but cheaper alternatives from other countries, such as British chocolate, due to increased prices for Swiss imports.
The tariffs could potentially impact several sectors of the Swiss economy, including the pharmaceutical industry, which has been exempt so far but faces the threat of separate tariffs in the future. The mechanical and electrical engineering industry, represented by Swissmem, fears the current tariffs could lead to the "de facto death" of the export business to the USA.
Economiesuisse, the federation of Swiss businesses, called for more negotiations, warning that the tariffs could put thousands of jobs at risk. The Swiss government is continuing to negotiate with the United States, despite the slim chances of success, according to Swissmem.
Political ramifications include opposition to US defense sales to Switzerland. The tariffs have sparked reconsideration of the deal for the planned purchase of 36 Lockheed Martin F-35 fighter jets, with lawmakers expressing resistance as a retaliatory move against the US tariff actions.
Some politicians have suggested recruiting FIFA's Swiss president Gianni Infantino to help Switzerland due to his friendship with Trump. However, there is no evidence of Infantino being involved in this economic or political situation.
In a meeting with US Secretary of State Marco Rubio, Keller-Sutter and a small delegation sought a friendlier levy but did not secure a trade deal or direct talks with President Trump. After the meeting, Keller-Sutter mentioned a "very friendly and open exchange on common issues."
Trump justified the tariffs by citing Switzerland's trade surplus of tens of billions of dollars with the United States. According to Customs data, nearly 19 percent of Swiss goods exports went to the United States last year. The Swiss tariff rate is higher than Trump's previous threat of a 31-percent tariff.
Capital Economics, a London-based research group, predicted that the tariffs could reduce Swiss GDP by 0.6 percent in the medium term. The Swiss government is scheduled to issue a statement regarding the tariffs.
Roland Rino Buechel, a lawmaker of the hard-right Swiss People's Party, believes Infantino is the best-placed person in Switzerland to help with the American president. Despite Infantino's potential access to the American president, there is no information suggesting that he is or will be intervening in this economic or trade matter.
- The mechanical and electrical engineering industry, under the umbrella of Swissmem, anticipates the current tariffs could lead to the potential demise of their export business to the USA, due to fears of a "de facto death" of the sector.
- Economiesuisse, the Swiss federation of businesses, has expressed concerns that the tariffs could put thousands of jobs at risk, prompting them to call for more negotiations with the United States government.
