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Confusion and anger in Switzerland - hit by highest tariffs in Europe

August 1, 2025

Switzerland is facing a severe economic shock as the United States imposes 39% tariffs on Swiss imports, the highest in Europe and fourth highest globally. Despite Switzerland's efforts to negotiate lower rates, including reducing its own tariffs on US goods to zero and promising significant investments in the US, President Trump remained focused on addressing the $47. 4 billion trade deficit between the countries.

Who is affected

  • Swiss exporters, particularly in pharmaceuticals, gold jewelry, watches, and machine tools
  • Swiss businesses facing potential job losses
  • Swiss citizens and consumers
  • The 9 million residents of Switzerland
  • The 400,000 US workers employed by Swiss investments in America

What action is being taken

  • The Swiss government is "feverishly" trying to negotiate with the US before the August 7th implementation date
  • Swiss businesses are warning about thousands of potential job losses
  • EconomieSuisse (representing businesses) is expressing concerns about reliable trade relations
  • The Swiss government is considering potential retaliatory measures including withdrawing investment offers, introducing reciprocal tariffs, or canceling orders for US F35 fighter planes

Why it matters

  • The 39% tariffs are the highest in Europe and fourth highest globally
  • Switzerland's $47.4 billion trade deficit with the US has become a major point of contention
  • The tariffs threaten Switzerland's competitive export industries
  • This represents a significant disruption to one of Switzerland's most important export markets
  • The situation undermines the certainty Swiss businesses need for planning
  • The tariffs could potentially cause thousands of job losses in Switzerland
  • This affects the economic relationship between the US and Switzerland, which is the world's 6th largest investor in the US

What's next

  • No explicit next steps stated in the article beyond the ongoing negotiations before the August 7th implementation date and the consideration of retaliatory measures.

Read full article from source: BBC