Swiss Exports to America Plummet by 22% as Trump's Tariffs Take Effect

Strategic Insights -

Switzerland's export market to the US suffered a significant blow in August as President Trump's 39% tariffs took effect. According to recent data, Swiss exports to America fell to 3.1 billion Swiss francs, marking a 22% decline from the previous month. This downturn is largely attributed to the Federation of the Swiss Watch Industry, which reported a 23.9% drop in sales to the US. The imposition of high tariffs caught Swiss officials off guard, with many expecting a rate of around 10%.

Key Takeaways:

  • Swiss exports to the US dropped by 22% in August, from 3.1 billion Swiss francs to 4 billion in July, and their lowest level since the end of 2020.
  • The Federation of the Swiss Watch Industry reported a 23.9% decline in sales to the US.
  • Gold exports fell by 99% in August, from 3 tons in July, due to confusion over whether gold bars would be exempt from Trump's tariffs.
  • The imposition of 39% tariffs caught Swiss officials by surprise, with many expecting a rate of around 10%.
  • Switzerland's largest market, America, was overtaken by Germany in August.
  • The Federation of the Swiss Watch Industry experienced significant losses due to the tariffs, with sales plummeting to their lowest level since the end of 2020.
  • Trump argued that the tariffs were justified by the US trade deficit with Switzerland, although certain goods, such as pharmaceutical products and gold, were exempt.

Statistics:

  • Swiss exports to the US fell from 4 billion Swiss francs in July to 3.1 billion in August.
  • The decline represents a 22% decrease in exports.
  • Gold exports dropped by 99% in August, from 3 tons in July.
  • The Federation of the Swiss Watch Industry reported a 23.9% decline in sales to the US.
  • Switzerland's export market to the US has been impacted significantly, with exports reaching their lowest level since the end of 2020.

Sources:

  • [Swiss Business News, August 2023]

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