Swiss exports to the United States grew for a second consecutive month in July, just before a steep 39% tariff was imposed by President Donald Trump. Exports rose by 1.1% compared to June, defying a broader 2.7% decline in Switzerland’s overall foreign sales. Imports from the US, however, dropped nearly 8%, leaving Switzerland with a CHF3 billion ($3.7 billion) trade surplus.
The tariff, the highest among developed nations, is expected to severely disrupt trade in key sectors such as machinery and technology. Industry groups have warned the surcharge could wipe out cross-border commerce in some areas. In response, the Swiss government announced measures to ease regulatory burdens and reduce production costs to help local companies remain competitive.
About 10% of Swiss exports are directly affected by the tariff, though pharmaceuticals — a crucial export sector — remain exempt for now. Officials are in talks with Washington to negotiate relief. Economists remain cautiously optimistic, noting that Switzerland’s economy expanded by 0.1% in the second quarter, but risks remain if tariffs are extended to include medicines, which make up nearly half of all exports to the US.