Then Swiss Finance Minister Karin Keller-Sutter speaks during a press conference after the signing of a German-Swiss police agreement. Kay Nietfeld/dpa
Switzerland, long known for its chocolate, cheese, banking prowess and towering mountains, was facing an economic shock on Thursday after US President Donald Trump imposed an eye-popping 39% tariff on Swiss imports.
The move has rattled the Alpine nation, whose economy is heavily dependent on exports.
President Karin Keller-Sutter tried to offer reassurance, saying: “Our economy has weathered many storms.” At the same time, she pointed to government support measures for companies forced to reduce employee hours due to vanishing US orders.
The mood among business leaders was far grimmer, however, amid fears tens of thousands of job could be on the line.
Industry association Swissmem warned that if the tariffs cannot be reversed, the Swiss tech sector’s exports to the US will be “effectively dead.”
Damien Cottier, a lawamker with business-friendly Free Democrats, called the punishing tariff an “attack against Switzerland.”
With a population of just 9 million, Switzerland relies on exports to thrive. The US is its largest trading partner, accounting for 18% of exports in 2024.
Besides straining a key trade relationship, thetariffs challenge Switzerland’s long-standing foreign policy strategy: neutrality.
The country has traditionally preferred to stay under the radar, cultivating good relations with all sides. In February, historian Sacha Zala noted that this quiet diplomacy included hopes of avoiding punitive US tariffs.
“That can work to a certain extent,” Zala told SRF radio. “But it is a false hope to think that just because you’ve behaved well – in quotation marks – you won’t be punished.”
Since Russia’s invasion of Ukraine, Switzerland has faced mounting pressure to abandon its neutrality. It eventually aligned with EU sanctions against Moscow but refused to allow allies to transfer Swiss-made ammunition to Ukraine. Critics argue the country has not done enough to locate or freeze assets linked to Russian oligarchs.
Calls for closer EU ties grow louder
The crisis has reignited the domestic debate over Switzerland’s position outside the European Union.
Social Democrat lawmaker Franziska Roth wrote last week on Instagram: “It is high time we abandon our self-importance of ‘us alone against the world’ and chart a path forward with Europe.”
Business groups also see growing urgency, especially as EU companies now enjoy a major competitive advantage, facing only 15% tariffs from Washington.
“Our geographical location makes close cooperation with the EU essential,” wrote Economiesuisse, a business association, even before the US tariffs were announced.
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