Since early April 2025, the US has levied base tariffs of 10 percent on all imports, but temporarily increased these with country-specific surcharges up to 49 percent. For Switzerland, a temporary tariff of 31 percent was introduced in April. For steel, aluminum, copper, vehicles and auto parts, sector-specific tariffs of up to 50 percent also apply. The current maximum rate of 39 percent follows a lengthy negotiation phase in which Switzerland unsuccessfully sought a special arrangement. As a result, the Swiss export sector is entering a new phase of trade barrier escalation—with an uncertain duration.

The 39-percent base tariff affects the vast majority of exporters. Currently, exemptions exist only temporarily for the pharmaceutical sector, where the US is conducting its own investigations under Section 232. Core industrial markets such as mechanical engineering, precision technology, watches and high-value consumer goods face immediate massive price increases—a clear disadvantage compared to European competitors. The exemption for pharma is fragile: its lifting could occur at short notice depending on US investigations. In practice, there are hardly any direct ways to facilitate market access.

The Federal Council is pursuing a pragmatic and de-escalating approach. Given the small size of Switzerland’s domestic market and its reliance on exports, the government is refraining from countermeasures. Instead, it is focusing on negotiated solutions and expanding economic-diplomatic relations. The objective is a swift reduction of tariffs through constructive talks with the US administration. In parallel, strategies are being implemented to safeguard Switzerland’s attractiveness as a business location, such as reducing bureaucracy and providing targeted support to affected companies. A unified effort from business, federal government, and associations is essential.

To cushion the impact of US tariffs, Switzerland will need to diversify its trade relations. The focus is on the rapid implementation of new free trade agreements, for example with Mercosur or China. Reliable relations with the European Union also remain indispensable, making the ratification of Bilaterals III a top priority. In addition, Switzerland is working to reduce regulatory burdens for companies and actively promote change toward innovation and digitalization in the economy. These measures constitute the foundation for future resilience in an increasingly fragile global environment.