President Donald Trump said Switzerland’s trade deficit with the US is the reason for the levies
Switzerland is reeling after President Donald Trump announced a 39% tariff on its goods, set to take effect August 7, making it one of the highest rates globally.
The surprise move followed a phone call between President Trump and Swiss President Karin Keller-Sutter, during which Swiss officials expected to finalize a trade deal. That did not happen.
Now, Switzerland is focused on presenting the US with a “more attractive offer” to reduce the tariffs.
Trump said the Swiss nation’s trade deficit with the US is the reason for the levies. It was at $38.5 billion in 2024.
However, most Swiss exports to the US are gold, which is exempt, and pharmaceuticals, which are temporarily excluded.
Swiss officials say they’ve already invested heavily in American industries, including a deal to purchase 36 F-35 fighter jets.
With little room to lower tariffs further, Switzerland may try to boost US investments or buy more liquefied natural gas.
Economists warn the 39% tariff could push Switzerland toward a recession. Swiss watchmakers and precision manufacturers say they cannot absorb such steep costs.