Switzerland’s stock market plummeted after US President Donald Trump imposed a 39% export tariff, sparking a crisis for the country’s economy and industry associations warn of tens of thousands of job losses. The tariff, one of the highest in Trump’s global trade reset, affects Swiss luxury brands, machinery, pharmaceuticals, and other products.
Negotiators had secured a 10% tariff on exports to the US just three months ago, but Trump imposed a higher levy, even surpassing his previous announcement of 31%. The Swiss cabinet held emergency talks and vowed to present a more attractive offer to the US president.
Industry experts warn that the rate could spark a recession if pharmaceuticals are included. With Switzerland’s export-oriented economy facing a huge impact, the country may need to reconsider its trade policies or invest in the US market.
Swiss officials denied reports that Trump imposed the tariff due to a phone call with President Karin Keller-Sutter. The US president stated that 10% tariffs were not enough, and Swiss media described the call as “naive.” Analysts predict that the situation could change at any moment, but some suggest Switzerland may eventually end up with a rate similar to that of the EU’s.
Source: https://www.theguardian.com/us-news/2025/aug/04/swiss-president-shares-plunge-us-tariffs-trump