U.S. 39% Tariff Hits Swiss Luxury Exports

The U.S. has imposed a 39% tariff on Swiss imports, excluding key pharmaceuticals but targeting luxury goods such as watches and chocolates, after Switzerland refused to make significant trade concessions over a $38-40 billion deficit. The measure marks the highest tariff imposed on any European country and significantly impacts Switzerland, for whom the U.S. is the top export market with $61-63 billion in goods exported last year. Swiss officials expressed shock and disappointment, warning of major threats to tens of thousands of jobs and noting sharp declines in watch sector stocks. The tariff is scheduled to take effect on August 7 unless a negotiated solution is reached, but Swiss leaders admit limited room for compromise. President Trump’s administration says the move is part of a strategy to reduce trade deficits and boost American manufacturing, though business leaders and economists in both countries warn of serious negative economic consequences. The decision has sparked widespread debate within Switzerland regarding both the government’s negotiation tactics and the future of Swiss-U.S. trade relations.