Swiss Gruyere industry faces multi-million revenue hit from US tariffs

SWISS Gruyere producers are bracing for a steep decline in U.S. sales after President Donald Trump announced a 39% tariff on Swiss goods set to go into effect on Thursday (August 7) which threatens to cost the industry millions in lost revenue this year.

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Swiss officials are in Washington trying to reverse US tariffs that could cut Gruyere exports by 1,000 tons.
The new tariffs may cost the industry up to 15 million francs as US buyers grow concerned.
Producers are cutting output and raising prices while hoping for a last-minute trade breakthrough.

Swiss President Karin Keller-Sutter and Business Minister Guy Parmelin travelled to Washington on Tuesday (August 5) in a last-ditch effort to negotiate with U.S. officials.

Gruyere, Switzerland's largest cheese industry, sees 40% of its production shipped abroad, with a third of that destined for the United States.

Anthony Margot, a fifth-generation cheese maturer, said immediately after the tariff was announced on Friday (August 1) he started to get calls from "very concerned" customers in the U.S. hoping a deal could be done.

Gruyere producers have already responded by reducing production by 3%, boosting marketing investments, and preparing to increase prices for U.S. consumers.

Producers' association 'Interprofession du Gruyere' estimates that annual exports to the U.S., averaging 4,000 tons, may drop by 1,000 tons due to the new tariffs.

That would reduce revenue by up to 15 million francs ($18.6 million) manager Olivier Isler said, adding that the tariff was a "hard blow" for the industry.

Swiss officials were reportedly optimistic earlier this year that negotiations could prevent steep levies, but Friday's announcement has left the nation reeling.

"We finally find ourselves in the category of countries with the highest taxes", Isler said.