Swiss Industry Warns US Tariff Gap With EU Threatens Export Competitiveness

Swiss industrial firms are flagging growing concern over a tariff disadvantage in the US market, where they face higher import duties than their European Union counterparts. The current 12.5% tariff on Swiss goods, in place since late July, is 2.5 percentage points above the rate applied to EU products.

Industry association Swissmem warns that a US investigation into industrial overcapacity could lead to even steeper tariffs, widening the gap further. Chairman Martin Hirzel expressed unease not only over the existing differential but also over the sustained pressure from Washington, which he said keeps tensions elevated.

A survey by Swissmem found that more than half of Swiss companies are absorbing the tariff costs by accepting thinner profit margins, rather than passing them on to US clients. Only 42% of firms have been able to shift the added expense to customers. The association cautioned that the situation could become severe if the tariff gap with the EU grows.

Hirzel noted that there is little room for further increases, with Swiss exports to the US already down 5.3% in the first half of 2026. If the differential were to reach 5 percentage points, nearly half of surveyed companies said their US business would be seriously endangered.

Despite the pressure, Hirzel said firms are unlikely to relocate production to the US, citing a shortage of skilled workers there. He stressed that a trade agreement ensuring Swiss companies are not disadvantaged relative to their main competitors remains essential.