Based on the latest reports as of Friday, August 1, 2025, Switzerland has been hit with a high, country-specific tariff rate from the US, despite ongoing negotiations.

Here is a breakdown of the situation for Switzerland:

Latest US Tariffs Update

• Tariff Rate: The US has announced a 39% ad valorem tariff on most Swiss goods. This is a significant increase from the 31% rate that was initially threatened in April and is more than double the 15% ceiling agreed upon for most European Union imports.

• Effective Date: While the initial deadline for new tariffs was August 1, the White House has pushed the start date for most new tariffs, including Switzerland's, to August 7, 2025. This provides a one-week window for countries to try to reach a last-minute agreement.

• Reasoning: The Trump administration has stated that the high tariff is a response to Switzerland's "continued lack of reciprocity" in its trade relationship with the US and a failure to make "meaningful concessions." A White House official specifically cited the US goods trade deficit with Switzerland, which was around $38.5 billion in 2024.

Deals and Agreements

• No Deal Reached: Despite bilateral talks, Switzerland has not secured a deal to lower its tariff rate. Swiss President Karin Keller-Sutter had a "final conversation" with President Trump before the August 1 deadline, but it was unsuccessful.

• Negotiations Ongoing: The Swiss government has expressed "great regret" and "disappointment" over the new tariff, calling it "arbitrary." However, they have also stated their intention to continue negotiating with the US to find a "negotiated solution."

Impact on Companies and Industries

The 39% tariff is expected to have a severe impact on several key Swiss industries, especially those that rely heavily on the US as an export market.

• Watchmaking: This is a particularly hard-hit sector. The Federation of the Swiss Watch Industry expressed disappointment, noting that Switzerland had already eliminated its own import tariffs on all industrial goods. Brands like Rolex, Patek Philippe, and Swatch will now face a significant increase in costs, which they will either have to absorb, reduce their margins on, or pass on to American consumers. The tariff could make Swiss watches prohibitively expensive and encourage US retailers to look to non-Swiss brands.

• Mechanical and Electrical Engineering (Swissmem): Swissmem, an association for companies in this sector, called the tariff a "massive shock" that would hit the export economy very hard and could endanger "tens of thousands of jobs." They noted that their European competitors are facing much lower tariffs, putting Swiss companies at a significant disadvantage.

• Pharmaceuticals: The pharmaceutical sector is a crucial part of Switzerland's economy and its exports to the US. While a spokesperson for the Swiss Economy Ministry stated that it is their understanding that the tariffs should not include this sector, the overall uncertainty remains high. The Trump administration has also been pressuring pharma companies like Novartis to lower drug prices in the US, which adds to the pressure on the industry.

• Food Industry: Swiss chocolatiers and other food manufacturers will also be impacted. While some multinational companies like Nestlé and Lindt & Sprüngli have production lines in the US, smaller and medium-sized companies that export their products will suffer. The tariff, combined with the US dollar-Swiss franc exchange rate, could lead to a nearly 50% increase in costs, which will likely result in lower sales in the US market.

The situation remains fluid, and businesses are encouraged to stay informed of any official announcements from the U.S. and Swiss governments regarding trade policies and specific tariff rates.