The imposition of a 39% tariff on Switzerland by the US administration has dealt a serious blow to the Alpine republic's exports to the US, Bloomberg reported, citing Swiss customs.
According to the customs agency, the country's export volume abroad fell by 22% in August compared to July. Specifically, watch exports fell by 8.8%, while pharmaceutical exports fell by 1.3%.
Imports from the world's largest economy to Switzerland remained virtually unchanged. This allowed the US to reduce its trade deficit with Switzerland to 2.06 billion Swiss francs (2.6 billion USD) from 2.93 billion Swiss francs (3.71 billion USD) the previous month.
The authorities in Bern were “shocked“ by the tariff, the highest among developed countries. Experts identified the sharp increase in Switzerland's trade surplus with the US in 2024 as the most likely reason for this tariff. Last year, it increased by 56% compared to 2023.
Overall, the country exported goods worth 60.9 billion USD to the US in 2024, mainly pharmaceuticals, medical devices, coffee, watches and gold. Gold, the largest export item, accounted for $11.5 billion..
On August 1, Trump signed an executive order imposing tariffs of 15% to 41% on more than 60 countries and the European Union. These tariffs took effect on August 8. The highest tariffs, along with Switzerland, were imposed on countries such as Iraq (35%), Serbia (35%), Laos (40%), Myanmar (40%), and Syria (41%).