Geneva: Switzerland is bracing for a major economic blow as its President, Karin Keller-Sutter, returned home empty-handed from a high-stakes mission to Washington, D.C., where she sought to avert a steep 39% tariff on Swiss exports. Despite what was described as a "very good meeting" with U.S. Secretary of State Marco Rubio, the Swiss leader failed to secure a breakthrough a development that could have far-reaching consequences for key sectors of the Swiss economy.
The proposed tariff, set to take effect this week, is the result of the United States targeting countries with persistent trade surpluses. While Switzerland had hoped to negotiate a lower tariff capped at 10% the American side showed no willingness to budge without greater concessions. Swiss officials say the U.S. remains firm in its stance, pressing for changes that Bern considers economically and politically sensitive.
The Swiss government is now in crisis mode. The Federal Council has announced an extraordinary meeting to discuss the fallout and possible retaliatory or mitigation strategies. The 39% tariff could deeply impact Swiss exports of luxury watches, precision machinery, dairy products like cheese and chocolate, and pharmaceuticals sectors that not only define the country's global brand but also employ tens of thousands of citizens.
Business leaders have raised alarms over the looming crisis. Swiss cheesemakers, in particular, have expressed fear that their U.S. market a major destination could collapse under the weight of the new duties. “This is not a symbolic gesture. It threatens real livelihoods,” said a spokesperson for Switzerland's food industry alliance.
The U.S. administration's move is seen by many in Europe as part of a broader tariff offensive aimed at rebalancing trade with long-time partners, often with little room for dialogue. President Trump has not issued a public statement on Switzerland’s visit, nor did he meet with President Keller-Sutter during her time in Washington a gesture some Swiss analysts interpret as a diplomatic snub.
In response, Switzerland is assessing all options. While a trade war with a long-time ally seems unthinkable, the country may have to reconsider its approach to future trade negotiations. For now, Swiss exporters are left facing an uncertain and costly road ahead as the 39% tariff takes effect.