Tariff Shock from Washington: How Trump’s Policy Impacts Switzerland
Donald Trump is back in the White House – and so is his aggressive trade policy. His new 2025 tariff package is already causing global waves. While most eyes are on the US-China-EU triangle, a key question emerges: What does this mean for Switzerland?
Trump’s New Trade Strategy
Just days into his second term, Trump reaffirmed his motto: “America First.” The new tariff plan includes massive import tax hikes on a wide range of foreign goods, especially industrial and tech products. The goal? Strengthen domestic production and cut the trade deficit.
Switzerland – Small, but an Export Powerhouse
Although Switzerland is not an EU member, it’s deeply integrated into global supply chains. It exports over CHF 300 billion worth of goods annually — including machinery, pharmaceuticals, luxury goods, and precision instruments.
Sectors most affected:
- Mechanical engineering
- MedTech
- Watch industry
- European suppliers active in the U.S. market
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Indirect Effects Still Matter
Even if the tariffs don’t target Switzerland directly, many Swiss companies will feel the pinch – especially those exporting through Europe or operating U.S. subsidiaries. A weakening euro against the Swiss franc could also hurt export competitiveness.
Reactions from the Swiss Economy
Business associations and the Federal Council are raising concerns. Diplomatic talks with Washington are already underway. At the same time, Switzerland is exploring new trade deals with growth markets like India, ASEAN countries, and South America.
What Can Companies Do?
- Diversify supply chains
- Consider U.S.-based production
- Focus on innovation and premium products
- Hedge against currency risks
FAQs
1. Will Swiss companies be directly affected?
Not directly, but companies with U.S. exports or indirect supply links through Europe will feel the impact.
2. Which sectors are at risk?
Engineering, MedTech, watches, and firms with U.S. operations.
3. What is the Swiss government doing?
The Federal Council is in dialogue with the U.S. and negotiating new trade agreements.
4. Is the strong Swiss franc another problem?
Yes, it makes Swiss products even more expensive for U.S. buyers.
5. Are there any opportunities in this?
Absolutely – in innovation, accessing new markets, and strengthening Switzerland’s global position.