US Imposes Crippling 39% Tariffs on Swiss Goods: Bern Businesses Fear the Worst
Bern, Switzerland – August 6, 2025 – A bombshell announcement from the United States has sent shockwaves through the Swiss economy, particularly in the Canton of Bern. President Donald Trump’s administration has imposed a staggering 39% tariff on a wide range of Swiss exports, prompting immediate concern from business leaders and calls for urgent government intervention. This is a developing story, and Archyde is bringing you the latest updates.
“Incomprehensible” Tariffs Threaten Swiss SMEs
Henrik Schoop, Director of the Commercial and Industry Association of the Canton of Bern (HIV), described the tariffs as “incomprehensible,” warning of potentially devastating consequences for the region’s small and medium-sized enterprises (SMEs). “At 39 percent, this is the end of the US market for most,” Schoop stated in a recent interview. The watch, electrical, and precision industries are expected to be particularly hard hit, with 20% of the watch industry’s exports already destined for the United States.
The timing couldn’t be worse. Global economic headwinds are already creating uncertainty, and these tariffs add another layer of complexity for Swiss businesses navigating a challenging landscape. The impact isn’t limited to exporters; Schoop notes that suppliers to these industries, as well as sectors like hospitality and sanitation, will also feel the pinch as consumer confidence dips.
A Race Against Time: Negotiations and Short-Term Solutions
Despite the grim outlook, Schoop remains cautiously optimistic that a negotiated solution is possible. He points to successful outcomes achieved by other countries in similar trade disputes as a potential roadmap for the Swiss Federal Council. “This is now the Hercules task for the Federal Council: To make offers, negotiate and bring the tariff down,” he emphasized.
In the short term, Schoop advocates for extending the maximum duration of short-time work benefits from 18 to 24 months – a proposal currently before Parliament – to mitigate the risk of mass layoffs. He also stressed the urgent need to finalize free trade agreements, such as the Mercosur deal, to diversify export markets and reduce reliance on the US.
Job Losses Loom: A Gradual but Significant Impact
While quantifying the exact number of jobs at risk is difficult, Schoop estimates that nationally, 12,500 or more positions could be affected. However, he anticipates a gradual process, with job losses occurring through a combination of direct layoffs and the relocation of production facilities to the EU or the US. This shift, while potentially cushioning the immediate blow, represents a long-term structural change for the Swiss economy.
Evergreen Insight: Trade wars and tariff disputes are a recurring feature of the global economic landscape. Understanding the historical precedents – such as the Smoot-Hawley Tariff Act of 1930, widely considered to have exacerbated the Great Depression – provides valuable context for assessing the potential consequences of current trade tensions. Diversification of export markets and a focus on innovation are crucial strategies for building resilience in the face of such disruptions.
Location Attractiveness: A Long-Term Strategy for Bern
Beyond immediate crisis management, Schoop argues for a renewed focus on enhancing the attractiveness of the Canton of Bern as a business location. While acknowledging that short-term liberalization steps won’t solve the current problem, he emphasizes the importance of long-term investments in streamlining planning and building permit procedures, securing strategic work zones, strengthening the dual education system, and implementing a competitive tax model.
“These are all pieces of the puzzle to be an attractive canton,” Schoop stated. He cautioned against internal divisions, urging a unified approach to promoting Switzerland’s strengths – particularly its high-quality products and innovative spirit.
Will Swiss Businesses Follow Bachmann’s Lead?
The Lucerne-based Confiserie Bachmann recently announced it would cease exports to the US in protest against the tariffs. Schoop believes each company must make its own decision, but stressed the importance of maintaining a commitment to free trade and dialogue. “Who on the free Handel Believe, the dialogue and the markets should not simply give up,” he said.
The situation remains fluid, and Archyde will continue to provide updates as they become available. The coming weeks will be critical as the Swiss Federal Council engages in negotiations with the US administration and businesses grapple with the immediate impact of these unprecedented tariffs. Stay tuned to Archyde.com for the latest developments and expert analysis on this breaking story and its implications for the global economy.
Image Placeholder: [Image of Henrik Schoop, Director of HIV]
Image Placeholder: [Image of Swiss watches being manufactured]
Image Placeholder: [Image of Donald Trump signing a trade document]
