The United States has officially designated Switzerland as one of the countries engaging in "unfair trade practices." Helene Budliger Artieda, the Director of the State Secretariat for Economic Affairs (Seco), confirmed this classification on March 10, 2025, stating the USA's position reinforces existing tensions between the two nations.
The American administration, led by President Donald Trump, has implemented stringent measures, compelling US companies to report perceived unfair trade actions from their partners, particularly targeting nations with favorable trade balances against the U.S. This scrutiny has significantly intensified due to the classification of Switzerland, leading to concerns among Swiss officials and industries alike.
Reto Föllmi, a professor of macroeconomics and foreign trade at the University of St. Gallen (HSG), expressed his disappointment and noted, "Unfortunately, this was to be expected. President Trump has established five criteria for evaluation, focusing on trade balance and exchange rate policy, with Switzerland under close examination. Despite the fact the U.S. enjoys trade surpluses with Switzerland, this classification appears unfounded." Föllmi lights concern about the potential for punitive tariffs stemming from this list, asserting, "The list and associated warning must be taken very seriously." He noted the real threat posed by potential tariffs could severely hinder the competitiveness of Swiss exporters.
A positive sentiment from Swiss officials indicates the country's strong economic relationships with the United States. Budliger Artieda championed this by stating, "We cannot be accused of being unfair: Switzerland has unilaterally abolished its industrial tariffs; we have no pharmaceutical tariffs. US companies can export their products to Switzerland duty-free." This reflects the fact Swiss companies have created around 500,000 jobs across the U.S., with averages peaking at $131,000 per annum. This argument emphasizes Switzerland's significant contributions to the U.S. job market, countering claims of unfair trade practices.
Reacting to the classification, political figures like Marianne Binder, mid-central councilor, confronted the label with sarcasm directed at the country's Trump supporters, posting on X, "Takethat, you Swiss Trump fanboys, who barely contained themselves during his election." Her comments reflect the domestic confusion over Switzerland's position being criticized by the very country it fosters important ties with.
Budliger Artieda's statement also highlighted the urgent need for Switzerland to demonstrate it does not engage in unfair trade practices to get removed from this questionable list. "We have good arguments. And we have long been doing exactly what President Trump wishes," she contended, asserting the necessity for effective communication with U.S. trade officials to reinforce their cooperative stances.
Despite Budliger Artieda's optimism, she acknowledged the volatile political climate under Trump's administration and warned against potential retaliatory measures if future tariffs are imposed, particularly on steel and aluminum. The uncertainties have created anxiety about how Switzerland can navigate this increasingly hostile trade environment.
Given imminent threats posed by the Trump administration’s policies, another layer of complexity is added about potential EU tariffs if the U.S. moves to impose duties on European products. Switzerland, historically often viewed as collaborating closely with the EU, may not find itself on friendly terms if U.S. measures lead to reciprocal tariffs. “We are also talking to Brussels about how punitive tariffs affecting Switzerland would be counterproductive for new bilateral agreements,” Budliger Artieda noted, hoping to safeguard Switzerland's interests amid international tensions.
Overall, experts like Föllmi argue for pragmatic efforts from Swiss trade officials to address these severe accusations directly. The juxtaposition of perceived unfair practices with the pragmatic contributions of Swiss businesses to the U.S. job market presents a compelling contention against the accusations. It remains to be seen whether such arguments will resonate effectively with American policymakers.
While tensions continue to mount, one undeniable truth remains: Switzerland stands at the crossroads of economic diplomacy, where it must urgently advocate for its commercial integrity before the political winds, heavily influenced by Trump’s "America First" strategy, drastically alter its bilateral relations with the United States.
With uncertainty looming, the need for Switzerland to assert its position becomes ever more pressing, especially as it keeps its eyes peeled for any unforeseen tariffs set to affect its economy.