(Bloomberg) — Donald Trump will impose a 39% tariff on imports from Switzerland, one of the steepest levies globally which threaten to leave the country\u2019s key exports reeling.<\/p>\n
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The outcome \u2014 detailed in an executive order Thursday \u2014 is higher than the 31% tariff rate Trump had threatened to levy in April and dashes hopes that the country would secure a more favorable deal.<\/p>\n
The Swiss government expressed its \u201cgreat regret,\u201d pointing out that the new tariff rate differs \u201csignificantly\u201d from a draft framework the countries had been negotiating.<\/p>\n
Bern\u2019s trade negotiators were caught unawares by the announcement since they had received encouraging signals from several senior US officials, according to a person familiar with their thinking. They plan to continue negotiating with the US and they still hope to agree to lower levies, the person added.<\/p>\n
US Tariff Hikes<\/p>\n
In a post on X, President and Finance Minister Karin Keller-Sutter said she had a final conversation with Trump before the deadline and the trade deficit remains \u201cat the center of US concerns.\u201d The Swiss government said it \u201ccontinues to seek a negotiated solution.\u201d<\/p>\n
The franc was among the worst performing major currencies on Friday, sliding 0.2% against the dollar. Still, it remains more than 8% stronger than it was before the initial April 2 tariff announcement.<\/p>\n
For Swiss chocolatiers including Lindt and watch makers like Swatch Group and Rolex SA, the steeper levies threaten to weigh on sales in the world\u2019s largest consumer market. Pharmaceuticals accounted for almost half of Swiss goods exports to America in 2024, according to data compiled by Bloomberg Economics.<\/p>\n
The Swiss economy rests on large contributions from industry giants Novartis AG and Roche Holding AG. Drugmakers face a double squeeze as Trump escalates his campaign to pressure them for lower prices, sending letters to 17 of the world\u2019s largest pharma companies demanding they charge the US what other countries pay for new medicines.<\/p>\n
Swissmechanic, an industry lobby group, called the 39% rate \u201cdangerous.\u201d It urged the government to negotiate in the narrow window till the tariffs are set to come into effect on Aug. 7, which otherwise risks leaving the economy becoming \u201cone of the few countries that permanently struggle with structural competitive disadvantages.\u201d<\/p>\n
Story Continues <\/p>\n
Technology manufacturing lobby Swissmem highlighted that Switzerland earns second franc from foreign trade.<\/p>\n
\u201cI am stunned \u2014 these tariffs are completely irrational and arbitrary,\u201d Swissmem chief Stefan Brupbacher said. \u201cThis decision jeopardizes tens of thousands of jobs in the industry.\u201d<\/p>\n
The rate on Swiss exports to the US is markedly higher than other trading partners who were able to negotiate frameworks with the US. The European Union, Japan and South Korea all landed on 15% levies.<\/p>\n
What Bloomberg Economics Says…<\/p>\n
\u201cThe seven-day window for the new tariffs to be implemented provides time for additional negotiations for those interested in reducing reciprocal or sectoral rates \u2014 Switzerland, India, Taiwan might still be working on those talks.\u201d<\/p>\n
\u2014Maeva Cousin, senior economist. For full global react, click here<\/p>\n
Trump in his second term has carried out a sweeping tariff agenda aimed at pressuring countries and industries to reshore manufacturing in the US and to reduce global trade imbalances. The US had a $38 billion trade deficit with Switzerland last year, just outside a ranking of top 10 trade shortfalls.<\/p>\n
Trump\u2019s tariff rate comes despite months of high-stakes diplomacy intended to complete an agreement, negotiations that forced Bern to balance its commitment to global openness against the protection of domestic agriculture. The industry represents less than 1% of the economy but commands out-sized political influence, and farmers\u2019 lobbyists had threatened to fight any settlement affecting Swiss high-tariff barriers in the area.<\/p>\n
Switzerland might not have been able to offer the US the concessions other countries were able to provide. It already had unilaterally scrapped industrial tariffs. Suggesting lower import rates for American citrus fruits, nuts and shellfish \u2014 plus simplified approval for medical devices \u2014 may not have been tempting enough.<\/p>\n
Trump\u2019s April 2 tariff announcement had put Switzerland\u2019s exporters in a double bind as it also caused a sharp Swiss franc appreciation. That prompted the Swiss National Bank to cut interest rates to zero after it had previously signaled it was done with easing.<\/p>\n
–With assistance from Levin Stamm, David Goodman, Malcolm Scott and Ramsey Al-Rikabi.<\/p>\n
(Updates with plan going forward in fourth paragraph.)<\/p>\n
Most Read from Bloomberg Businessweek<\/p>\n
\u00a92025 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) — Donald Trump will impose a 39% tariff on imports from Switzerland, one of the steepest levies…\n","protected":false},"author":2,"featured_media":309002,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5311],"tags":[3662,32,113116,2600,10216,49,978,659],"class_list":{"0":"post-309001","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-united-states","8":"tag-bloomberg","9":"tag-donald-trump","10":"tag-swiss-government","11":"tag-switzerland","12":"tag-tariff-rate","13":"tag-united-states","14":"tag-us","15":"tag-usa"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114953044903821450","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/309001","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=309001"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/309001\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/309002"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=309001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=309001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=309001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}