Switzerland Expresses Disappointment Over Trump’s 39% Tariff, Seeks Negotiated Solution

The Swiss government voiced deep disappointment on Friday after the Trump administration announced a 39% tariff on Swiss goods, one of the highest rates imposed on any US trading partner. The new tariffs, set to take effect on August 7, mark a significant escalation from the previously threatened 31% rate and are more than double the 15% applied to most European Union imports.

The Swiss Federal Council expressed regret over the US decision, noting that it came despite “progress made in bilateral talks and Switzerland’s very constructive position.” The government remains in contact with US authorities and is actively seeking a negotiated solution before the deadline, according to a statement posted on social media. Swiss officials are scrambling to mitigate the impact on key industries, including watchmaking, precision machinery, and manufacturing, which face severe economic strain from the steep levies.

The Trump administration justified the 39% tariff, citing Switzerland’s failure to make “meaningful concessions” by dropping trade barriers. A White House official stated, “Switzerland, being one of the wealthiest, highest-income countries on Earth, cannot expect the United States to tolerate a one-sided trade relationship.” The US highlighted its $38 billion goods trade deficit with Switzerland in 2024 as a key concern, though pharmaceuticals, a major Swiss export, are reportedly exempt from the tariff for now. Swissmem, representing Switzerland’s mechanical and electrical engineering sectors, called the tariff “completely irrational and arbitrary,” warning that it threatens tens of thousands of jobs and could render Swiss goods uncompetitive compared to those from the EU, Britain, and Japan, which face lower rates of 15%, 10%, and 15%, respectively. “It’s a massive shock for the export industry and for the whole country,” said Deputy Director Jean-Philippe Kohl. The tariffs, part of a broader US trade policy shift affecting nearly 70 countries, were initially set to begin on August 1 but have been delayed to August 7 to allow further negotiations. “There were a few [deals] that were very close but didn’t quite make the deadline,” Al Jazeera’s Kimberly Halkett reported from the White House, noting the extension provides “breathing space” for final agreements. The Trump administration has secured trade frameworks with the EU, Japan, South Korea, Indonesia, and the Philippines, while other countries face rates as high as 50% for Brazil and 35% for Canada.

Global markets reacted sharply to the tariff announcement, with Europe’s STOXX 600 falling 1.8% on Friday and Wall Street opening lower. Al Jazeera’s Kristen Saloomey, reporting from the New York Stock Exchange, noted that while markets had anticipated tariffs, the uncertainty surrounding their scope continues to unsettle investors. The Swiss franc slid 0.2% against the US dollar, despite earlier gains of over 8% this year.

Swiss negotiators, led by President and Finance Minister Karin Keller-Sutter, are racing against the August 7 deadline to secure a more favorable deal. Keller-Sutter, who spoke with President Trump on Thursday, said the US trade deficit remains “at the center of US concerns.” Despite the setback, analysts suggest there is still time for last-minute adjustments, with some expressing cautious optimism that Switzerland could align its tariff rate with the EU’s lower 15%