Confusion and Outrage in Switzerland as the Country Faces Europe’s Highest Tariffs

39%? For Switzerland, this is a major shock — worse than even the worst-case scenario. These are the highest tariffs in Europe.

Globally, Switzerland now faces the fourth highest rate, behind Syria, Laos, and Myanmar. The issue has dominated news broadcasts and radio discussions. Just a few weeks ago, the Swiss government was radiating confidence.

Now, those illusions have been shattered. A recent phone call between Finance Minister Keller-Sutter and President Trump yielded no results. Hours later, news broke that the new tariffs would be a punishing 39%, not the previously threatened 31%.

Switzerland's trade deficit with the U.S. stood at $47.4 billion in 2024. However, when including overlooked service sectors — which Trump has ignored — the actual gap drops to around $22 billion. Switzerland sells more to the U.S. (mainly pharmaceuticals, gold jewelry, watches, and machine tools) than it buys.

To offset this, the Swiss government dropped all tariffs on U.S. industrial goods, and numerous Swiss companies (including Nestlé and Novartis) pledged billions in investments for U.S.-based facilities. Switzerland is already the 6th largest investor in the U.S., and according to the Swiss, their businesses provide employment for 400,000 Americans.

Still, closing the trade gap seems impossible. Switzerland’s population is only 9 million, and frankly, most do not want to buy American products. Gas-guzzling cars are too big for mountain roads, and American cheese and chocolate… simply don’t suit Swiss tastes.

This may be a sign of the frustration caused by a now unpredictable trade policy from one of Switzerland’s most important export markets — one that undermines the confidence Swiss businesses depend on.

There’s a small window of opportunity until the new tariffs take effect on August 7. Until then, the Swiss government is expected to push hard for negotiations. Swiss companies are warning that unless the 39% rate is reduced, thousands of jobs could be lost.

But it's unclear how much room to maneuver remains.

With promises of investment and zero tariffs, Switzerland has already put everything it can on the table. The only tactics left are retaliatory: withdrawing investment offers, imposing reciprocal tariffs, and — as a nuclear option — canceling Switzerland’s order for U.S. F-35 fighter jets.

Across Switzerland, confusion and anger dominate. Many Swiss feel they are being punished for being one of the world’s most competitive and innovative countries, rather than celebrating with the usual patriotic pride.

Others point out that the country has weathered economic shocks before — and believe it can overcome this one too, by doing what it does best: innovating.

Source: BBC News

Photo (Getty Images): Geneva skyline, view of the Jet d’Eau fountain, Lake Geneva, the bay and harbor from the bell tower of Saint Pierre Cathedral on a sunny day with blue skies.