The Swiss government on Wednesday formally dismissed the findings of a U.S. investigation that assessed how a group of about 60 economies, including Switzerland, handle imports produced with forced labour. The probe led Washington to propose fresh import duties on goods from those countries.
The Trump administration has put forward a plan to levy additional tariffs of either 10% or 12.5% on imports from the 60 named economies after concluding that their shortcomings in stemming trade in goods made with forced labour are unreasonable and impede U.S. commerce. The move is presented by U.S. officials as a way to reinstate emergency tariffs imposed by President Donald Trump that a U.S. Supreme Court decision voided in February.
Switzerland’s economy ministry said in response that Swiss practices do not harm U.S. industry and therefore rejected the conclusions outlined by the U.S. Trade Representative, or USTR. According to the USTR’s recommendation, Switzerland and other countries that have not enacted an explicit import ban on goods produced with forced labour should face a 12.5% tariff, while members of the EU would be subject to a 10% rate.
Rudolf Minsch, chief economist at Swiss business lobby economiesuisse, characterised the forced labour allegation as "completely unfounded" and said the U.S. action was predictable given Washington’s desire to preserve tariffs that were set to expire. He added that Switzerland facing a marginally higher tariff than the EU looked manageable, noting the cost difference "could be passed on to customers or saved by using alternative routes."
On that point he said: "So from that point of view, it’s not decisive," and added, "It is perhaps simply somewhat annoying."
The economy ministry further indicated it expected the proposed 12.5% duties to replace separate 10% tariffs that are due to expire on July 24. That set of tariffs was distinct from the forced-labour probe and would be superseded if the new duties are imposed.
Separately, the forced-labour inquiry ran in parallel with another U.S. investigation which alleges certain countries - including Switzerland - operate excess industrial capacity to the detriment of U.S. industry. Switzerland rejects that allegation, but the ministry said it anticipated additional tariffs might follow from that investigation as well. The results of the industrial-capacity portion of the probe are expected in the coming weeks.
In developments from the prior year, President Trump imposed a 39% additional tariff on Swiss goods, the highest such level applied to any country in Europe. Switzerland reached an initial agreement with the United States in November that cut those tariffs, and Swiss officials have been engaged since then in efforts to formalise that deal.
The economy ministry said it is seeking a long-term bilateral accord to govern economic relations between Switzerland and the United States regardless of legal and political shifts within the U.S.
Summary
Switzerland has rejected U.S. findings from a probe into trade in goods made with forced labour and disputes the USTR’s recommendation that it be subject to a 12.5% tariff. Washington’s proposal to apply 10% or 12.5% duties to imports from about 60 economies aims to restore emergency tariffs that were overturned by the U.S. Supreme Court in February. Swiss authorities and business representatives say U.S. industry is not harmed by Swiss rules, and Switzerland expects the tariff differential with the EU to be manageable as it pursues a formal bilateral agreement with the United States.