Based on the latest economic forecast for 2026 released by Switzerland on October 16, 2025, it has revised GDP growth down to 0.9% from a previous forecast of 1.2% because of US tariffs on Swiss goods and services. Further, Swiss officials predicted that the Swiss economy will expand by 1.3% this year but noted that it is significantly below average for the country. According to economists, US tariffs have created a heavy burden on Swiss industries.

Back in August 2025, Switzerland was subject to 39% tariffs on goods sent to the US. This led to a major decline in Swiss exports to the US. With a view to settle down the trade war, Swiss Economics Minister Guy Parmelin had a videoconference with US Trade Representative Jamieson Greer on November 8, 2025, but it ended without any substantial outcomes. Furthermore, due to the curtailing of Swiss exports to the US, milk produced by Swiss farmers is not getting market access. This has resulted a surplus of milk and forcing reductions including the slaughtering of cows.

According to US tariffs, branded and patented pharmaceutical products are now subject to 100% tariffs upon entry to the US, unless the Swiss manufacturers have or are building production facilities in the US.

Additionally, due to US tariffs, the Swiss franc is getting stronger because investors are demanding to buy it during this uncertain time. More buying drives up the Swiss franc’s value, which has increased by 12% this year. This has created challenges, as the stronger Swiss franc makes Swiss exports more expensive. Combined with US tariffs, this naturally limits Swiss goods in the US market, putting downward pressure on domestic prices and creating a risk of disinflation.