Swiss industry fears tariff gap to European Union could hurt US exports

By John Revill

ZURICH, Aug 24 (Reuters) – Swiss industrial companies fear higher tariffs they face on exports to the United States are putting them at a major disadvantage against European rivals who are exposed to lower import charges, a survey said on Monday.

The U.S. has imposed a tariff rate of 12.5% on Swiss goods since the end of July, 2.5 percentage points higher than the duty applied to products from the European Union.

A U.S. investigation into industrial overcapacity could result in an even higher tariff rate, further widening the differential with the EU, industry association Swissmem said.

“What worries me, aside from the 2.5 percentage point tariff difference compared to the EU, is that the U.S. government is keeping tensions high,” said Swissmem chairman Martin Hirzel.

According to a Swissmem survey, more than half of Swiss firms are taking a hit on their profit margins rather than passing on the tariffs to their U.S. clients, which they fear losing if they increased prices in line with the import duty.

While 42% of companies are able to pass on the increased costs to U.S. customers, Swissmem warned of severe consequences if the current 2.5 percentage point tariff differential with the EU increased further.

Hirzel said there was little room for further tariff increases, with U.S.-bound exports already 5.3% down in the first six months of 2026.

If the gap increased to 5 percentage points, nearly half of companies said their U.S. business would be seriously endangered, he said.

“Companies will not relocate their production to the U.S. as a result, not least because there is a shortage of skilled workers there,” Hirzel said.

“An agreement that does not put us at a disadvantage relative to our most important competitors remains essential,” he added.

(Reporting by John Revill, editing by Ariane Luthi)