Prices for the Swiss watch of the same name, Swiss chocolate and Swiss cheese could rise in a week as a result of President Donald Trump’s trade war.
Switzerland, a home for some of the most famous luxury brands in the world, now faces the upcoming 39 % of the American industrial group tariff warned on Friday that Swiss and US consumers can pay the price.
Trump signed a executive order on Thursday on Thursday, which placed tariffs on many US business partners – another step in his business agenda, which will test the global economy and alliance – that is going to enter next Thursday. The order applies to 66 countries, the European Union, Tai -wan and the Falkland Islands.
In Switzerland, officials did not achieve the final agreement with the US after Trump originally threatened 31 % of the tariff in April. Swiss companies will now have one of the steepest export duties-Laos, Myanmar and Syria had higher data at 40-41 %. Meanwhile, a 27-member block of the EU and Britain negotiated 15 percent and 10 % of tariffs.
The character came as a surprise
The Swiss government spent Friday – the country’s National Day – turns from the news. Swiss President Karin Keller-Sutter said that 39 % of the character was a surprise, because the negotiators intervened last month with Trump’s administration, which apparently was not approved by the American leader himself.
“Now we are analyzing the situation and trying to find a solution,” Keller-Sutter told reporters. “I can’t say what the result will be, but it will certainly damage the economy.”
The US business deficit with Switzerland was $ 38.5 billion last year, a 56.9 % increase compared to 2023, according to the United States Sales Representative. Keller-Sutter said they believe that Trump eventually chose 39 % of the tariff, because the number was rounded off the deficit of business with $ 38.5 billion.
“It was clear that the president was focused on a business deficit and only on this problem,” she said.
Time ticks for tracking companies
For the Swiss company Watch Companies, whose products are already coming up with price tags in tens of thousands – no hundreds of thousands – euros, could stand the foot next week.
39 % of the number was particularly dealt with by the Swiss watch federation, because Switzerland in 2024 got rid of import tariffs for all industrial goods.
“Since Switzerland has removed all its own obligations for imported industrial products, there is no problem with the reciprocity between Switzerland and the US,” the Federation said in a statement. “Tarifs are a serious problem for our bilateral relationships.”
The export of Swiss watches has already faced a long -term slowdown, with a significant decline in the United States, Japan and Hong Kong, according to June’s Federation data, the latest available.
Swatch and Rolex refused to comment on Friday. Representatives of Patek Philippe, IWC and Breitling did not respond to requests for comment.
Acid taste for Swiss chocolate
Natišenálnár Chocolatiers Nestlé and Lindt & Sprüngli said they have production lines for American customers in the US. However, it is assumed that small and medium Swiss societies will suffer under tariffs.
Roger Wehrli, CEO of the Association of Swiss Chocolate Manufacturers. Also known as Chocosuisse, he said that Switzerland exports 7 % of its chocolate production to the US.
It is not just 39 % of the tariff. Once manufacturers take into account the exchange rate between US dollars and Swiss francs (USD1 to 1.23 francs on Friday), Wehrl said it was almost 50 % increase in costs for Swiss society. And this is a large number that can be handed over to US consumers, unless the immense margins are further reduced.
“I expect our industry to lose customers in the United States and that sales volumes will be severely reduced,” The Associated Press said.
Wehrli said he wanted Swiss chocolate to sell in other markets around the world to decide. Nevertheless, it hopes that American customers remember that Swiss quality is beating cheaper quantities.
“I think that even though the prices of Swiss chocolate increase as a result of very high tariffs, I think it is worth buying Swiss chocolate,” he said. “It is worth (it) to really eat consciously and really enjoy it instead of a lot of clay.”
Hard pill for Swiss pharmacy
Swiss pharmaceutical Powerhouse Roche says he is working to ensure that his patients and customers around the world have access to their medicines and diagnosis in the middle of the Trump tariff war.
“Although we believe that pharmacies and diagnosis should be exempt from tariffs to protect patients’ access, supplier chains, and eventually future innovation, we are ready to carry out potential tariffs and confidence in any impact management,” the statement said.
In April, the company announced that in the next five years it is planning to invest $ 50 billion in the United States and create $ 12,000. The company already employs more than 25,000 people in the US.
Meanwhile, Novartis, another main Swiss pharmaceutical company, said it was reviewing the Executive Order of Trump.
“We are still determined to look for ways to improve access and availability for patients,” he said.
(Tagstotranslate) Switzerland luxury brand
