World trade: US dollhammer: Swiss burglary

Switzerland has shocked the US ColleM in Switzerland: 39 percent on Swiss imports has ordered US President Donald Trump. “The prosperity of everyone is in danger,” warns the industrial association of the tech industry, Swissmem. The tariffs pay the importers and US consumers, but with that “Made in Switzerland” becomes so expensive that orders should collapse, the economy is afraid. The United States is the most important export market in Switzerland in front of Germany, with almost 19 percent share in the entire export.

The Economiesuisse industrial association warns of company bankruptcies. Swissmem director Stefan Brupbacher sees tens of thousands of positions in danger. Also because competitors from the EU “only” are burdened with 15 percent US tariffs.

“If the customs difference stays, that would certainly bring an impulse to Germany,” says Hans Gersbach, co-director of the economic research center (KOF) of the University of ETH in Zurich, the German Press Agency. He calls the sectors mechanical engineering, medical devices, precision instruments and pharmaceutical. In addition, there could be relocation of production to Germany. At the same time, German suppliers in Switzerland would be negatively affected. This will therefore hardly be significant overall economy.

The KOF expects 39 percent tariffs with a decline in Swiss gross domestic product from 0.3 to 0.6 percent. If the pharmaceutical industry, which has been excluded so far, would be at least 0.7 percent. The Swiss President Karin Keller-Sutter traveled head over head to Washington to try to avert the worst. Who is most affected in Switzerland:

Swiss watches are very popular with the rich in the USA: Rolex, Breitling, Tag Heuer – such and similar brands have already been seen on wrists by Donald Trump and other billionaires in his cabinet. No country go to as many Swiss watches as in the USA: pieces worth 4.3 billion francs were in 2024, followed by China with CHF 2 billion. The US share of watch exports is 16.8 percent.

Chrystel Graf, President of State Council of the Canton of Neuchâtel, speaks of a “club hit”. Your canton is considered the cradle of Swiss watchmaking with the locations of La-Chaux-de-Fonds and Le Locle, he has produced brands such as Omega, Longines, Tissot and Audemars Piguet.

Swiss companies are with precision machines and components in some areas among the world market leaders: special excavators, inspection devices for controlling pipelines or sensors for factory automation. However, if the competition can deliver cheaper because of the high tariffs, you may be left behind.

The more than 170-year-old manufacturer of chocolate specialties, Maestrani, sees black. “If these tariffs are used permanently, our competitiveness in the US market would no longer be given,” says the head of marketing, Valentin Haag. The customer would have to shell out the tariff, so that the Maestrani chocolates are significantly more expensive than competing products from the USA or the EU. However, the sales partners still have inventory. Maestrani premium chocolate can already cost four euros for 100 grams.

In Gruyère cheese, 13 percent of production go to the United States, more than 4,300 tons last year. “This business is acute at risk,” reports the magazine “Schweizer Bauer”. The variety organization Gruyère AOP expects sales break -in and has already decided to cut production.

For large companies like Lindt & Sprüngli and Nestlé, the tariffs are less a problem. They produce more than 90 percent for the USA market in the USA – Nestlé.

Gold export to the USA has increased massively, possibly in response to the uncertainty of the markets and geopolitics, because the precious metal is considered a safe haven for assets. According to the Federal Office of Customs and border security, 475 tons went to the USA in the first half of the year, and after 153 tons over the past year. From January to June, this accounted for CHF 39.2 billion, value of 54 percent of exports to the United States. The gold is practically melted in Switzerland, without great added value.

The dollar has been weakening since Trump’s taking office. The Swiss franc is also considered a safe harbor and increases significantly, around 14 percent since January. This makes exports more expensive. It is quite like this from Trump: “With a weaker dollar you earn a lot of more money,” he said recently.

Problem deficit calculation

Trump speaks of a massive trade deficit towards Switzerland. It comes to around CHF 39 billion. “Absurd,” said the Swiss President. Trump only looks at the exchange of goods. Almost CHF 65 billion Swiss exports faced almost CHF 26 billion in 2024. In the service sector, however, the United States is clearly ahead. The deficit is a total of around $ 20 billion.