Confusion and anger in Switzerland as it faces Europe’s highest US tariffs
Switzerland is stunned by punitive 39% US tariffs on its exports, the highest in Europe, intensifying trade tensions ahead of the August 1 deadline.
A sudden decision by the US administration has left Switzerland facing 39% tariffs on its goods, the highest rate imposed by Washington on any European country. This punitive rate eclipses the 31% threatened last April and ranks as the world’s fourth-highest after Syria, Laos, and Myanmar.
Swiss officials had been optimistic after President Karin Keller-Sutter secured reassurances in May, expecting a tariff deal closer to 10%. But a final call with President Trump on the eve of the August 1 deadline failed to yield an agreement.
Trade Deficit at the Heart of the Dispute
Washington’s grievance centers on the $47.4 billion trade deficit it runs with Switzerland in goods. President Trump views such imbalances as threats to US manufacturing, despite many economists disagreeing. Including services, the Swiss deficit falls to $22 billion—a figure the US administration chose not to acknowledge.
Swiss Countermeasures and Limitations
In response, Bern cut its own industrial tariffs on US imports to zero, and top Swiss firms, such as Nestlé and Novartis, pledged multi-billion-dollar investments in American facilities. Yet with a population of just nine million, Swiss consumers remain reluctant buyers of US cars, cheese, and chocolate.
Industry groups warn that tariffs set at 39% could cost thousands of jobs across Switzerland, intensifying pressure on negotiators ahead of the August 7 implementation date.
The US decision to impose 39% tariffs on Swiss exports highlights the limits of small economies in high-stakes trade talks and underscores Washington’s aggressive stance on reducing trade deficits.
This topic was reported by BBC News.
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