Tariffs: Switzerland is now on equal footing with EU/EFTA states, says economiesuisse

The United States and Switzerland, joined by Liechtenstein, aim to conclude negotiations to finalise their trade deal by the first quarter of 2026, according to the White House. Keystone-SDA

The Swiss business federation economiesuisse has welcomed the trade agreement between Switzerland and the United States, which it says now puts the country on an equal footing with European Union and European Free Trade Area (EFTA) states.

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Economiesuisse stressed that the 39% tariffs have not only seriously weakened the competitiveness of Swiss companies on the US market, but have also put jobs under pressure and even threatened the existence of some companies.

“That said, the 15% US tariffs also remain a burden for Swiss exporters,” economiesuisse said.

Even with the new agreement, the problems facing Switzerland as a business location are far from being resolved, the country’s leading business federation added. In addition to the US tariffs, the sluggish economy in other key markets and geopolitical tensions are also weighing on the Swiss economy.

“Switzerland must therefore enhance its attractiveness if it is to remain competitive in the international competition between business locations. The Swiss economy must not be slowed down and burdened by laws and regulations,” it said.

In addition, the burdens on companies and workers must be reduced rapidly and substantially, said the business federation.

Reactions

Business sectors have generally reacted positively.

Yves Bugmann, president of the Federation of the Swiss watch industry, said the tariff cut was “very good news and a relief”.

“Going down to 15% gives us a little more security after the wave of uncertainty brought about by the 39%,” he told the AWP news agency.

“The United States remains an important market with a lot of potential. We will therefore be able to better exploit it with our brands,” he noted. The US represents nearly 20% of Swiss watch exports.

“For the industrial sector, which was subject to a 39% tariff since August 1, this is good news. For the first time, we have the same conditions in the US market as our European competitors,” said Nicola Tettamanti, president of Swissmechanic, which represents small and medium-sized manufacturers.

“It’s a great relief on tariffs, but additional economic burdens and risks for Switzerland remain,” said Hans Gersbach, a director of the KOF Swiss Economic Institute at ETH Zurich.

Switzerland’s machinery, precision instruments, watchmaking, and food sectors, which export to the US, would see the most relief, Gersbach said.

Swiss industry has been suffering under the heavier tariff regime. On Friday technology industry association Swissmem reported a 14% fall in exports to the US during the three months through September, while machine tool makers saw shipments slump 43%.

Translated from French by DeepL/sb

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