Economy

How Switzerland Is Fighting Back Against Trump’s Tariffs: A New Diplomatic Push

Swiss officials met US counterparts to address 39% tariffs. Talks aim to protect Swiss exports.

September 6, 2025, 3:22 PM

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The national flag of Switzerland waves in the wind, a symbol of sovereignty and neutrality, set against a deep blue sky. By MDL.

Executive Summary

Switzerland’s Vice President Guy Parmelin reported “constructive meetings” in Washington, expressing optimism for resolving the 39-percent tariff on Swiss goods imposed by President Trump.

The 39-percent tariff, a significant increase from the previous baseline, threatens crucial Swiss export sectors like watchmaking, industrial machinery, chocolate, and cheese, and has contributed to a downward revision of Switzerland’s economic growth forecast.

Swiss officials have engaged in diplomatic efforts with key US officials, including the Secretaries of Commerce and Treasury, and the Trade Representative, to present an “optimised offer” and seek a resolution to the tariff situation.

The Story So Far

President Donald Trump’s administration imposed a substantial 39-percent tariff on Swiss goods, significantly increasing an earlier 10-percent baseline tariff. This measure poses a serious threat to Switzerland’s export-driven economy, particularly its vital watchmaking, industrial machinery, chocolate, and cheese sectors, creating a competitive disadvantage compared to other nations. Consequently, Switzerland has engaged in high-level diplomatic efforts, with its Vice President and other officials holding talks with senior US officials to negotiate a resolution and protect its economic interests.

Why This Matters

The imposition of a 39-percent tariff by President Trump on Swiss goods poses a significant threat to Switzerland’s export-driven economy, leading to a downward revision of its economic growth forecast and creating a competitive disadvantage for key sectors like watchmaking and industrial machinery. This situation underscores the critical nature of ongoing diplomatic efforts by Switzerland to negotiate a resolution, as the outcome will heavily influence the future outlook for these vital industries and the broader economic partnership with the United States.

Who Thinks What?

Switzerland’s Vice President and Economy Minister Guy Parmelin expressed optimism for a “real opportunity ahead” following “constructive meetings” with US officials, despite concerns that the 39-percent tariff imposed by President Donald Trump threatens key Swiss export sectors and has contributed to a downward revision of Swiss economic growth forecasts.

The Trump administration implemented a 39-percent tariff on incoming Swiss goods, significantly higher than rates for other nations, and has engaged in ongoing diplomatic discussions with Swiss officials to address the situation.

Switzerland’s Vice President and Economy Minister Guy Parmelin announced “constructive meetings” with senior United States officials in Washington, expressing optimism for “real opportunity ahead” as the country navigates significant import tariffs imposed by President Donald Trump. Parmelin’s recent trip aimed to address the 39-percent tariff on Swiss goods, which has raised concerns within Switzerland’s export-driven economy.

Tariff Background and Swiss Concerns

The Trump administration surprised Switzerland by implementing a 39-percent tariff on incoming Swiss goods, effective August 1. This substantial levy represents a significant increase from the 10-percent “baseline” tariff that President Trump initiated on various global imports in April.

The elevated tariff rate poses a threat to crucial sectors of Switzerland’s export economy, notably watchmaking, industrial machinery, chocolate, and cheese. Swiss businesses are particularly worried about a competitive disadvantage, given that the European Union and Japan face a 15-percent tariff, while Britain secured a 10-percent rate.

Diplomatic Engagements

Following the tariff announcement, Swiss President Karin Keller-Sutter and Minister Parmelin made an initial trip to Washington in early August for discussions. A brief meeting with US Secretary of State Marco Rubio, who does not oversee tariff policy, did not result in immediate progress.

During his latest visit, Minister Parmelin confirmed holding discussions with key US officials, including Secretary of Commerce Howard Lutnick, Secretary of the Treasury Scott Bessent, and Trade Representative Jamieson Greer. Parmelin and Keller-Sutter had previously met Bessent and Greer in Geneva in May to discuss a potential tariff agreement.

The Swiss economy ministry has stated that specific details regarding the content of these recent talks are not being disclosed “for tactical reasons related to the negotiations.” Foreign Minister Ignazio Cassis indicated that Switzerland presented an “optimised offer” during Parmelin’s trip.

Economic Impact and Swiss Stance

Bern has argued that the United States benefits from a significant services trade surplus with Switzerland, and that most US industrial goods enter Switzerland tariff-free. The State Secretariat for Economic Affairs recently revised its forecast for Swiss economic growth next year down to 0.8 percent from 1.2 percent, citing the higher US import tariffs as a contributing factor.

The ongoing dialogue underscores Switzerland’s commitment to deepening its economic partnership with the United States while seeking a resolution to the challenging tariff situation. The outcome of these discussions remains critical for the future outlook of key Swiss export industries.