FAMAGUSTA GAZETTE— Switzerland said Thursday it will not retaliate against sweeping U.S. tariffs that threaten nearly 60 percent of its exports, choosing instead to pursue diplomatic negotiations with Washington.
The decision comes as a new 39% tariff on Swiss goods — one of the highest rates imposed by the Trump administration — went into effect, hitting key industries including chocolate, machinery and luxury watches. Swiss exporters warn the move could cost thousands of jobs.
“Switzerland is focusing on support measures for the country’s businesses and is continuing negotiations with Washington to resolve trade issues,” the Swiss Federal Council said in a statement.
The tariffs stem from President Donald Trump’s broader effort to reduce the U.S. trade deficit and pressure foreign governments into new trade deals.
The U.S. recorded a $38.5 billion goods trade deficit with Switzerland last year, a figure Trump reportedly used to justify the 39% rate.
Swiss officials had hoped to avoid the steep duties through last-minute talks, but negotiations failed to produce a deal.
President Karin Keller-Sutter expressed disappointment, saying the tariffs would “certainly damage the economy.”
Luxury watchmakers, already facing slowing demand in key markets, are bracing for price hikes and reduced margins.
Chocolate producers, including small and medium-sized firms, say the tariffs could amount to a 50% cost increase once currency exchange rates are factored in.
Despite the economic pressure, Switzerland has ruled out countermeasures, citing its commitment to open trade and long-standing ties with the United States. The government said it will continue to seek a negotiated solution.
Pharmaceuticals and gold remain exempt from the new tariffs, but Trump has hinted that drug imports could face duties of up to 250% in the future.
Switzerland eliminated all import tariffs on industrial goods in 2024, and officials argue the U.S. measures lack reciprocity. Industry groups are calling for urgent support as the country navigates one of its most serious trade challenges in decades.