Donald Trump has introduced a broad 39% export tariff on Switzerland, causing major concerns for the country’s economy, which relies heavily on exports. This new tax, one of the highest in a global trade shift led by the Trump administration, has created significant disruption. The Swiss stock market dropped sharply, and government officials held emergency meetings to address the crisis.
Swiss negotiators had spent three months trying to secure a much lower 10% tariff, which they believed was possible. As reported by The Guardian, a thirty-minute phone call on Thursday evening between President Trump and Swiss President Karin Keller-Sutter made the situation worse. This led to an even higher tariff than the 31% rate Trump had previously mentioned.
Sources have described the call as “disastrous” and “badly misjudged,” with some accusing the Swiss president of being too naive in her approach. The economic impact on Switzerland has been sudden and severe. The country’s main stock market index dropped 1.8 percent when trading opened on Monday, the first day after the tariff announcement.
Swiss plans to appease Trump to get tariffs lowered
Industry groups have warned that tens of thousands of jobs could be at risk because of the new tariffs. The taxes will heavily affect key Swiss exports, including luxury watches, jewelry, chocolate, machinery, and pharmaceuticals, though the pharmaceutical sector is not currently included in the new rate.
An economist at ETH Zürich University, Hans Gersbach, warned that such a high tariff could push Switzerland into a recession, especially if pharmaceuticals are added later. The United States is a critical market for Swiss goods, making up about one-sixth of the country’s total foreign sales.
39% tariffs for Switzerland – Federal Council and economy react in dismay to the bad news
— Alternative News (@AlternatNews) August 1, 2025
Trade body EconomieSuisse speaks of a very serious burden for the economy.
The Swiss are accustomed to cherry picking and expected a 0% tariff. pic.twitter.com/oNKTsObVNm
In response to the economic shock, the Swiss government held an emergency meeting and announced plans to improve its offer to the Trump administration. While officials did not share specific details, they said, “Switzerland enters this new phase ready to present a more attractive offer, taking US concerns into account and seeking to ease the current tariff situation… The call was not a success… There was not a good outcome for Switzerland. But there was not a quarrel. Trump made it clear from the very beginning that he had a completely different point of view, that 10% tariffs were not enough,”
The business minister, Guy Parmelin, said the government needed to fully understand why Trump made this decision before taking further steps. He mentioned that Trump’s main concern was the large US trade deficit with Switzerland, which was 38.5 billion Swiss francs last year. Possible compromises being considered include buying more US liquefied natural gas or encouraging Swiss companies to invest more in the US, similar to what the European Union has done.
Swiss diplomats are now working quickly, as the tariffs are set to take effect on August 7. Both President Keller-Sutter and Business Minister Parmelin have said they are willing to travel to Washington for more talks if needed. However, they have also pointed out that their options are limited, since US imports already have 99.3 percent free access to the Swiss market, and many Swiss companies have already made big investments in the US.
