The 31% tariffs announced by the Trump administration this week, were described by some analysts as like taking a sledgehammer to Swiss trade. Some industries are already eyeing alternative markets to cushion the blow, reported RTS.
However, Switzerland’s industry sectors will feel the impact of new American tariffs unevenly. While the pharmaceutical industry has so far escaped largely unscathed, other sectors are more exposed. Watchmakers, for whom the US accounts for around 20% of sales, face a heavy blow. Machinery, precision instruments and electrical equipment could see losses of up to CHF 2 billion. Agri-food exporters, including chocolate and cheese producers, may see revenues fall by 20%.
Last year, the US was the pharma sector’s largest foreign market, accounting for 48% of the CHF 65 billion total Switzerland exported to the US. Most of this came from vaccines, anti-serums (blood serum containing antibodies) and medicines. Pharma (CHF 31 billion), together with gold (CHF 11 billion) made up 65% of total exports to America in 2024.
Some analysts were surprised by both the high level of tariffs and the pharma exemption. Still, the reprieve is welcome, said one. However, the respite may be short-lived. A senior US official warned that President Trump is considering launching a separate investigation into pharmaceutical imports, potentially opening the door to future tariffs. Swiss firms argue that they are among the largest contributors to R&D spending in the US, a fact they hope will weigh in their favour.
Other industries are looking for ways to limit the pain. Swissmem, Switzerland’s machinery, electrical equipment and metals industries association, is urging exporters to diversify beyond the US, which accounts for just 15% of their foreign sales. It is encouraging its members to strengthen ties with the EU and fast-growing markets such as India, South-East Asia, Latin America and China.
Luxury watchmakers face similar threats. One expert expects new US tariffs to dampen demand for Swiss watches and force brands to reconsider their pricing. The impact on brands such as Rolex, Patek Philippe and Swatch could be severe as America is their biggest market. Tariffs of 20% were expected. 31% has come as a shock. Watch firms are rushing to restock US subsidiaries while deciding how much of the cost to pass on to US consumers.
The United States is also Switzerland’s second-largest market for chocolate, with exports worth CHF 605 million. One analyst estimates that the new tariffs could make Swiss chocolate significantly more expensive for American consumers, potentially slashing sales by 20%.
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