Switzerland is assessing higher US tariff, pushing for 'negotiated solution'

"Switzerland has been and continues to be in contact with the responsible authorities in the U.S.," the Federal Council said in a post on X, adding that it "continues to strive for a negotiated solution."

The government said it would analyse the new situation and decide how to proceed after Switzerland was hit by one of the steepest U.S. levies globally. The figure is also significantly higher than a 15% tariff for most EU imports into the United States.

Switzerland, which described the original 31% tariff as "incomprehensible", had been working to reduce the levy on shipments to the United States, its biggest export market.

The additional tariff announced by U.S. President Donald Trump's administration differs significantly from a joint draft statement approved by the Federal Council on 4 July, following intensive talks between both countries, the Swiss Federal Department of Finance told Reuters in a statement.

Since then, they had been waiting for a sign-off on what was understood to be a preliminary framework for a deal, according to a person familiar with the matter.

Finance Minister Karin Keller-Sutter and Economy Minister Guy Parmelin had visited Washington for talks to press Switzerland's case.

The higher tariffs are putting pressure on export-oriented companies such as the Swiss watch industry and manufacturers of machinery and precision instruments, and their suppliers, the Swiss Federal Department of Finance said.

"Due to the high proportion of industrial goods in Swiss exports to the U.S., this sector is bearing the brunt of the additional customs duties," a department spokesperson said.

The U.S. is Switzerland's top foreign watch market, accounting for 16.8% of exports, or 4.4 billion francs worth, according to Federation of the Swiss Watch Industry.

Swiss business leaders and officials have underlined how much Switzerland spends in the United States: the European country is the seventh-largest investor in the United States.

Switzerland's main business lobby on Friday said the U.S. tariffs on Swiss imports were not justified or understandable and put good trade relations between the countries at risk. Business group Economiesuisse also said the levies would result in an acute competitive disadvantage compared to the EU.

"The new U.S. tariffs make Swiss exports more expensive, weaken the competitiveness of companies, and negatively impact the investment climate."

Switzerland sent about 65 billion Swiss francs ($80 billion) of goods to the United States in 2024, or about one-sixth of its total exports of 394 billion francs.

Total trade with the U.S. was 91.9 billion francs, or about 12.7% of all imports and exports, Swiss government data show.

Switzerland's trade surplus with the United States last year was almost 38.7 billion francs.