Swiss exporters brace for 15% US tariffs—but pharma escapes unscathed
New US tariffs on Swiss exports will impose an average rate of 15%, according to the KOF Swiss Economic Institute. While the immediate financial burden is expected to stay manageable, businesses face ongoing uncertainty about future trade policies.
The institute also confirmed that pharmaceutical products will remain exempt from these additional charges.
The latest tariffs include a 5% most-favoured-nation (MFN) duty, bringing the total rate to 15%. Analysts at KOF do not foresee a sudden cost surge for most Swiss exporters in the near term. However, they warn that prolonged unpredictability over tariff changes could push up operational expenses and slow economic expansion.
Existing exemptions, particularly for the pharmaceutical industry, will stay in place. This means the overall tariff load will remain close to previous levels for many sectors. Yet, the institute highlights that persistent uncertainty may discourage investment and inflate administrative costs for companies.
Earlier proposals, such as a 39% tariff rate, had raised concerns about significant job losses—estimates suggested between 7,500 and 15,000 full-time positions could be at risk. While the current 15% rate is lower, the broader economic impact is still expected to be limited, according to KOF's assessment.
The new tariffs introduce a 15% rate, but pharmaceuticals remain untouched. Businesses may avoid immediate financial strain, yet the lingering unpredictability could still weigh on growth and hiring decisions. The institute's findings suggest a cautious outlook for Swiss exporters in the months ahead.
