Swiss exports to US were growing before stinging tariffs

Swiss exports to the US, adjusted for seasonal swings, rose 1.1% in July compared to June Keystone / Christian Beutler

Swiss exports to the United States inched up in July, the second straight month of expansion before President Donald Trump unexpectedly slapped a 39% tariff on the country.

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Foreign sales to the US, adjusted for seasonal swings, rose 1.1% from June, the Swiss Office for Customs and Border Security said Thursday — bucking the 2.7% decline in overall exports.

+ How should Switzerland respond to the US tariffs?

Imports from the world’s biggest economy sank by 7.9%, part of a wider pullback across regions. That resulted in a trade surplus with the US of CHF3 billion ($3.7 billion), a touch higher than June’s CHF2.9 billion and near the average level over the last two years.

The data show the last month of trade before the highest US tariff among developed nations began, a burden that will “effectively annihilate” cross-border commerce in some areas, according to business lobby Swissmem. The group represents machine and technology makers, whose shipments are particularly hit.

+ Swiss government working with firms to overcome high US tariffs

The government presented a plan to help domestic businesses on Wednesday by cutting red tape to lower production costs. It urged ministries to urgently present ideas to alleviate regulatory burdens, while plans for new regulation are to be put on hold.

About 10% of Swiss exports fall under the elevated US tariff, the government said, with key goods like medicines exempt so far. Officials are still negotiating with Washington to secure a lower surcharge.

“Discussions are currently ongoing at various levels,” chief government spokesperson Nicole Lamon told reporters Wednesday.

Despite the levy, the government and most analysts don’t expect Switzerland to enter a recession. A first estimate of growth in the second quarter showed surprise expansion of 0.1% after forecasters had predicted the economy would shrink.

The cautiously optimistic outlook could change, however, if US surcharges are extended to include drugs, as Trump has repeatedly threatened. Switzerland is a major exporter of pharmaceuticals, with medicines from companies like Roche, Novartis and Sandoz last year accounting for almost half of the goods it shipped to America.

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