Swiss Manufacturers Reeling Under New U.S. Tariff Shock

Swiss manufacturers have been left stunned after U.S. President Donald Trump imposed a 39% tariff on their exports, significantly higher than the initial 31% and the usual 15% for EU imports. This decision places thousands of jobs at risk in the export-reliant Swiss economy.

The unexpected levy sends shockwaves through Switzerland's mechanical, electrical, and jewelry sectors, which heavily rely on the U.S., their top export market. While Swiss officials engage in discussions to mitigate the impact, Foreign Minister Ignazio Cassis emphasized the importance of reaching a mutual agreement.

In contrast, the pharmaceutical sector receives a reprieve, as it is exempt from the steep tariff. However, broader pressure from the U.S. is mounting for the sector to reduce prices. The Swiss government hopes ongoing negotiations will help lower general tariffs and eliminate the threat of similar instances in the future.

(With inputs from agencies.)