Switzerland and its neighboring country Liechtenstein have long shared an economic market, but President Donald Trump’s tariffs have created tension between the two nations. The Swiss government has clarified that it cannot use Liechtenstein as a middleman to reroute goods to avoid higher tariffs.
Under a 102-year-old customs treaty, Switzerland and Liechtenstein are closely linked, making it difficult to measure trade between them. However, when it comes to tariffs, the countries do not face the same treatment. The US has imposed tariffs of 39% on Swiss exports, while those from Liechtenstein are only 15%. The Swiss State Secretariat for Economic Affairs says that Swiss firms cannot use Liechtenstein as a way to avoid tariffs because they would still be recognized as Swiss in origin.
Liechtenstein’s head of government, Brigitte Haas, has expressed concerns about the risk of Swiss companies trying to use her country as a way to dodge import taxes. However, she notes that the penalties are high and unlikely to deter anyone. The US administration is also cracking down on “transshipments,” or the movement of goods to an intermediate destination, with a 40% penalty tax aimed at discouraging this behavior.
The move has significant implications for Switzerland, which relies heavily on imports from the US. Swiss companies fear that Trump’s tariffs could lead to price hikes and inefficiencies in the domestic market. The impact could also be felt by Liechtenstein, which counts Switzerland as its main export market.
Source: https://fortune.com/2025/08/13/switzerland-businesses-rerouting-goods-liechtenstein-dodge-tariff