Switzerland Today
Dear Swiss Abroad,
Trump’s tariffs remain the dominant topic in the Swiss media. The export industry and stock market are reacting, with iconic Swiss products like watches and cheese fearing heavy losses. Following the US president’s latest remarks, the Swiss pharmaceutical industry is now also on edge.
We round off the week with forged signatures, soaring housing prices and a question mark over Switzerland’s biggest female football star.
Best regards,
The US is imposing steep tariffs on key Swiss export sectors. The watch industry has already reacted by shipping excess inventory to the US. But what impact will this have on the market?
And what tariffs could the Swiss pharmaceutical sector now face? Swiss public broadcaster, SRF, is certain: the 31% figure is based on a flawed calculation.
As my colleague Claire Micallef reported yesterday, the 31% tariffs on Swiss goods entering the US are particularly high compared to those imposed on other trading partners. On Wednesday, the pharmaceutical sector was still exempt – but following new comments from President Trump, “mega tariffs” could soon hit Swiss pharma as well. Shares in Roche and Novartis have already dropped by up to 5%.
The tariff bombshell is sending shockwaves through global stock markets and export industries. More reactions are emerging from Swiss sectors: the watch industry, especially in the entry-level and mid-price segments, expects losses in the vital US market, where it will be difficult to pass on the cost increases. A rise in grey market sales and possible disinvestment are also anticipated.
According to Swiss public broadcaster, SRF, the Trump administration’s tariff formula overlooks a crucial detail: Switzerland actually runs a CHF21 billion ($24.67 billion) deficit with the US in services, largely due to licensing fees for software and other digital services. Furthermore, Swiss companies invest more in the US than anywhere else. Bilateral relations go far beyond the trade in goods, SRF points out.
If implemented as announced, these tariffs would be highly detrimental to the Swiss economy. Whether they remain in place or are modified will be key in the weeks to come.
Buying a home in Switzerland is becoming increasingly difficult – even for households with an annual income of CHF200,000 ($235,000). A new UBS analysis reveals that only around half of all property listings remain financially accessible to such households.
Financial feasibility is becoming a major obstacle to home ownership, UBS economists said on Wednesday. In high-cost regions like Zurich and Geneva, buying is only realistic in more remote areas. Young people in particular are often forced to give up on owning a home, contributing to a declining home ownership rate among those under 65.
Despite this, demand for home ownership remains high, driven by immigration, falling mortgage rates and a persistent supply shortage. Lower interest rates have reduced running costs, making buying more attractive than renting. UBS forecasts suggest that house prices could continue to rise as demand continues to outstrip supply.
Signature-collecting firms are playing a bigger role in Swiss politics than many realised. An investigation by Swiss public broadcaster, SRF, shows that these companies are reshaping the landscape of direct democracy.
Earlier this year, the Swiss government filed criminal complaints over 21,000 allegedly forged signatures tied to five separate popular initiatives. It was the first time that large-scale signature fraud had been officially confirmed.
SRF analysed signature collection patterns across all initiatives since 2000 and found that a disproportionate number of signatures originate from cantons with the most professional collection companies – namely Vaud, Geneva and Fribourg. Meanwhile, the share of signatures from other cantons has clearly declined.
The companies are accused of using unfair and, in some cases, illegal practices. In a practical test, robots were shown to be capable of forging signatures. Politicians across the spectrum have expressed alarm.
With the UEFA Women’s Euro set to kick off in Switzerland in under 90 days, questions are mounting about whether Alisha Lehmann will be part of the squad.
The Aargauer Zeitung poses the question: can Switzerland afford to host a home tournament without its most recognisable football star?
Lehmann has more followers on Instagram than Roger Federer. Her massive online following – 16 million and counting – has been a boon for women’s football. Yet her place on the pitch is less certain. Since joining Juventus Turin last summer, she has started only five of 18 matches, mostly making brief appearances. Her recent form for the national team hasn’t been convincing either.
Though Lehmann’s social media fame makes her an invaluable marketing figure alongside stalwarts like Ramona Bachmann and Lia Wälti, sporting performance remains key. As the Aargauer Zeitung puts it: a national team for the Euros needs more than millions of followers – especially if that means Switzerland can’t fully capitalise on its promotional potential.
Translated from German using DeepL/amva/ts
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