US Imposes 39% Tariff on Swiss Exports, Hits Key Sectors

In 2025, President Trump imposed a 39% tariff on Swiss exports, targeting key sectors such as luxury watches, machinery, and food products, while temporarily exempting pharmaceuticals and gold. This unprecedented tariff, one of the highest on a developed country, has severely disrupted Switzerland's export-driven economy, which heavily relies on the U.S. as its largest trading partner. Swiss President Karin Keller-Sutter's urgent diplomatic mission to Washington failed to secure tariff reductions, prompting the Swiss government to pursue further talks without immediate retaliation. Business leaders warn that the tariffs could cost tens of thousands of jobs, with the tech and watch industries particularly at risk, leading firms to consider relocation or market diversification. The tariffs come amid broader changes in U.S. trade policy emphasizing protectionism, forcing Switzerland and other export-dependent nations to rethink economic strategies and diplomatic relations. Despite these challenges, Switzerland’s stock market and government maintain cautious optimism about long-term resolutions through continued dialogue.