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By Opalesque:

On August 1, 2025, the Trump administration announced a significant increase in tariffs on Swiss industrial goods from 31% to 39%, effective August 7.

According to Erlen Capital Management AG, An independent Swiss asset manager headquartered in Zurich, this move came despite Switzerland having abolished all industrial tariffs earlier in 2025 and granting 99% of U.S. goods duty-free access. The U.S. justified the tariffs by citing Switzerland's refusal to make "meaningful concessions" and its excessive trade surplus. Simultaneously, Washington demanded price cuts from 17 pharmaceutical companies, including Novartis and Roche, threatening up to 200% tariffs on pharmaceuticals if demands aren't met by September 29, 2025.

Trade relationship significance

The U.S. represents Switzerland's most important export market, with CHF 65bn (US$80.5bn) in exports in 2024 - approximately one-sixth of total exports - creating a trade surplus of CHF 38.7bn. Excluding gold refinement and re-export (US$15.73bn), Switzerland exports around CHF 53bn worth of goods to the U.S., representing 6-8% of the country's GDP.

The tariffs will affect the pharmaceutical, watchmaking, and the mechanical, electrical, and metal (MEM) industries, according to Erlen.

Pharmaceutical industry

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