Swiss industry association Swissmem on Monday described U.S. President Donald Trump’s weekend decision to lift a temporary tariff on imports to 15% from 10% as a source of fresh disorder for global trade and a deterrent to investment activity.
Swissmem said the increase - announced over the weekend - exacerbates existing volatility and contributes to a wider climate of uncertainty that is dampening spending on investment. In a statement the group called on the Swiss government to press ahead with efforts to formalise a bilateral accord with Washington to restore legal certainty for exporters.
The association noted the backdrop for its concerns: in August the United States had imposed a 39% import duty on Swiss exports, the highest level among European countries. That was followed in November by a preliminary agreement between Bern and Washington that reduced those levies to 15%, aligning Swiss exporters with the tariff rate applied to the European Union. Switzerland has since started negotiations to make that arrangement permanent, with the United States seeking to conclude talks by the end of March.
Swissmem explicitly criticised the rapid fluctuation in U.S. policy. "U.S. President Donald Trump’s announcement that he will increase the additional tariff imposed on Friday from 10% to 15% is exacerbating the current chaos," the statement said. "Global uncertainty is huge. This is dampening investment activity." The group also highlighted a sequence of U.S. decisions: the administration initially imposed a 10% temporary tariff on Friday after the U.S. Supreme Court struck down an earlier tariff programme, then raised that duty to 15% the following day.
On the technical question of how the latest additional duties interact with the November agreement, Swissmem said it appeared the new supplemental U.S. tariffs would not be stacked onto the 15% rate already agreed between Switzerland and the United States. Nevertheless, when the additional levy is combined with a pre-existing 5% duty on industrial goods that applied before the U.S. began broadening its global tariffs last year, the effective rate for Swiss industrial exports would be roughly 20%.
"This will significantly increase prices for American customers," Swissmem warned, while noting one limited upside for the mechanical and electrical engineering sector: comparable measures are likely to apply to competing foreign suppliers as well.
Swissmem concluded by urging Swiss negotiators to keep seeking a formal, legally binding settlement with the U.S. government to reduce the legal ambiguity facing exporters and to support investment decisions by companies operating in affected sectors.
Switzerland has eliminated its own industrial tariffs in 2024.
Key points
- Swissmem says the U.S. move to raise a temporary global tariff to 15% increases trade chaos and depresses investment activity - affecting industrial exporters and investment decisions.
- Switzerland had faced a 39% U.S. duty in August; a November deal cut U.S. levies to 15% and talks are underway to formalise that accord by the end of March.
- Combined with a pre-existing 5% industrial duty, Swissmem calculates the effective rate could reach about 20%, which may raise prices for American customers and affect the mechanical and electrical engineering sector.
Risks and uncertainties
- Policy volatility - Rapid changes in U.S. tariff levels are creating uncertainty that Swissmem says is reducing investment; this primarily impacts exporters and capital-intensive manufacturers.
- Negotiation outcome - Talks to formalise the November agreement must be concluded by the end of March if Washington’s timeline is to be met, leaving an outcome risk for Swiss exporters and trade-dependent industries.
- Cost pass-through - If effective duties approach 20% once combined with prior levies, American buyers of Swiss industrial goods could face significantly higher prices, affecting demand and competitive dynamics for the mechanical and electrical engineering sector.