DistantNews
Support us
US tariffs favor EU over Switzerland, sparking industry protest
🇨🇭 Switzerland /Economy & Trade

US tariffs favor EU over Switzerland, sparking industry protest

From Neue Zürcher Zeitung · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • The US has increased tariffs on Swiss exports to 12.5%, citing insufficient measures against forced labor.
  • Swiss industry association Economiesuisse disputes the U.S. claim, stating Switzerland has strong legal protections against forced labor.
  • The new tariffs disadvantage Swiss companies compared to EU firms, which face lower rates due to their own import ban on forced labor goods.

The United States has imposed new tariffs on Swiss goods, raising the rate to 12.5% from a previous 10%. This move, justified by U.S. Trade Representative Jamieson Greer as a response to Switzerland's inadequate measures against forced labor, impacts Swiss exports. While not a complete "tariff shock," the increased rate disadvantages Swiss businesses, particularly in the high-tech and machinery sectors.

Swiss industry association Economiesuisse strongly refutes the U.S. allegations. The organization stated in a press release that there is no evidence of Swiss supply chains being used to smuggle forced labor goods into the U.S. market. They emphasize that Switzerland prohibits forced labor under its constitution, civil, and criminal law, and has ratified relevant International Labour Organization conventions while implementing UN guiding principles on business and human rights.

There is no evidence that Swiss supply chains are being used to smuggle goods from forced labor into the US market.

— EconomiesuisseThe Swiss industry association disputes the U.S. claim regarding forced labor in its supply chains.

The core of the U.S. demand is an import ban on goods produced with forced labor. Switzerland, however, relies on individual corporate due diligence and preventive measures instead of a blanket ban. This approach places Switzerland, along with trade partners like Japan, South Korea, and Australia, in a higher tariff category. The European Union, having adopted an import ban in late 2024, benefits from a lower 10% tariff.

Economiesuisse deems the U.S. decision "neither comprehensible nor justified." The association argues that the tariffs create a significant competitive disadvantage for Swiss companies in the crucial U.S. market, especially when compared to competitors from the EU, Great Britain, and other nations with lower tariffs. Each percentage point increase makes Swiss products more expensive, potentially driving U.S. customers to cheaper alternatives. Economiesuisse is calling for negotiations to address the issue.

neither comprehensible nor justified

— EconomiesuisseThe association's assessment of the U.S. government's decision to impose higher tariffs.
DistantNews Editorial

Originally published by Neue Zürcher Zeitung in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog