The ongoing US trade war is beginning to impact Swiss businesses, with the first companies now reporting short-time work due to new American tariffs. According to the State Secretariat for Economic Affairs (Seco), some Swiss firms have reduced their production capacity, citing the tariffs as a key reason.
For short-time work to be authorised in Switzerland, companies must demonstrate an exceptional downturn caused by factors beyond their control. Seco has officially recognised the US tariffs as a valid justification for such measures. However, it currently regards these as isolated cases, noting that the latest figures only reflect the situation as of January 2025.
The tariffs, introduced by US President Donald Trump, impose a 10 percent duty on most foreign goods and 25 percent on imports of steel, aluminium, and vehicles. If the tariffs against Switzerland increase to 31 percent in July as planned, the number of companies applying for short-time work is expected to rise sharply.
In 2022, Switzerland exported 18 percent of its goods to the United States, making it the country's largest export market after excluding gold. The Swiss government, keen to mitigate the impact, has dispatched a delegation led by Federal President Karin Keller-Sutter and Economics Minister Guy Parmelin to Washington. Former US Ambassador Edward McMullen commented that Switzerland had "negotiated intelligently from the start, without confrontation."
While the industry remains hopeful that the tariff conflict will be temporary, a prolonged dispute with increased duties would have serious consequences for Swiss manufacturers.
Source: www.blick.ch