9 CHRISTOF FORSTER It was a bombshell that shook Switzerland to the core. On Swiss National Day, US President Donald Trump hit the country with an exorbitantly high tariff rate of 39 per cent. Only a few countries in the world have to endure higher punitive tariffs. The steep import tariffs will be felt most keenly by machine manufacturers, watchmakers and producers of luxury goods (which also include Nespresso capsules). The pharma industry has been spared. phone. She apparently managed to get the US president to understand the consequences of his tariff policy. That was how the “Washington Post” reported the outcome of their call, in any event. Since then, it has emerged that that conclusion was false, something that took even Keller-Sutter by surprise. Trump asked a lot of questions, she said. “I clearly found a way to get through to him.” High-ranking delegations from both countries subsequently reached agreement on a tariff deal. All that was missing was Trump’s signature. But that showed no sign of appearing. Doubts in the Federal Council began to grow. Shortly before the ultimatum expired, Keller-Sutter requested a second telephone call with the US president. Accounts vary on how exactly this call went. In any event, it failed to produce the desired result. Quite the opposite: instead of the 31 per cent initially threatened, Swiss companies are now being penalised with a tariff of 39 per cent. Once again, anyone who believed there was a special relationship between the two “sister republics” was disappointed. The current situation is more reminiscent of an elder sister telling her younger sister what to do. Hit where it hurts The tariff announcement triggered a fresh wave of hectic activity in Switzerland. Politicians and representatives of the economy sought in vain for ways to avert the tariff imposition. There was also something humiliating about the whole affair: while the US president was speaking disparagingly about the president of the Confederation on television, the latter was on a plane heading for Washington. But the discussions were unsuccessful. The Swiss economy must – at least for the time being – live with tariffs of 39 per cent. This steep duty is hitting Switzerland where it hurts. Exports are Switzerland’s economic lifeline. They are one of the reasons behind the country’s affluence. For a long time, during the period of open international trade, Switzerland was able to leverage its status as a small country that was not a member of the European Union. This position is looking increasingly tenuous. The division of the world into power blocs, which is what seems to be happening, might drive Switzerland closer to the EU. A first step in this direction would involve approving the new treaty package with the EU. More than a tariff shock It initially seemed that Switzerland was part of a first group of countries that were going to be able to make a customs deal with the USA. The shock arrived on 1 August: President Trump imposed a 39 per cent tariff on imports from Switzerland. President of the Confederation Karin Keller-Sutter at the 1 August celebrations on the historic Rütli meadow: all the questions she fielded were about the tariff shock, not the Swiss National Day. Photo: Keystone Related topic: the purchase of the US F-35 fighter jet has been a huge debacle for Switzerland, page 23 Conversely, Switzerland abolished all industrial tariffs at the beginning of 2024. Over 99 per cent of all goods from the USA can be imported into Switzerland tariff-free. The Federal Council expressed concern at Trump’s announcement. The FDP party president called it a “catastrophe”. The SP, on the other hand, criticised the Federal Council’s “strategy of currying favour” with the USA, a strategy it said had failed “massively”. Financial umbrella association economiesuisse expressed its shock. In its view, the high tariffs are neither justified nor comprehensible. “A way to get through to Trump” The Federal Council and Swiss business community had both felt for a long time that they were out of danger, even though Trump had imposed a 31 per cent tariff on Switzerland in April. Shortly thereafter, President of the Confederation Karin Keller-Sutter spoke with Trump on the Swiss Review / October 2025 / No.4 News
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