Latest News Updates in Switzerland on a Wednesday
In recent developments, the United States has imposed significant tariffs on imports from Switzerland as part of its updated tariff policies. Since April 9, 2025, goods originating from Switzerland have been subject to an additional 31% import duty when entering the U.S. This tariff applies to sectors such as steel, aluminum, vehicles, and automobile parts, with no exemptions foreseen for steel and aluminum duties that came into force on March 12, 2025.
A 25% tariff on all imported vehicles came into force on April 3, 2025, and automobile parts followed on May 3, 2025. Starting April 5, 2025, the U.S. introduced an additional 10% duty on goods under the Most Favored Nation (MFN) tariff regime, with certain exceptions.
Swiss importers and exporters have taken measures to mitigate the impact of these tariffs. In early 2025, there was a surge in imports of pharmaceuticals and precious metals to avoid these tariffs. However, this surge reversed in April and May as volumes returned to normal levels.
The tariffs have raised concerns about the potential cost to the Swiss economy. Some economists have warned that the tariff costs could reach CHF 17.5 billion. On the diplomatic front, there has been ongoing negotiation between the U.S. and affected countries, including Switzerland. The U.S. extended the tariff negotiation deadline to August 1, 2025, indicating some openness to discussions or agreements to mitigate the tariff impact. However, no definitive deals have been announced so far.
In Switzerland, the real estate market has seen a rise in house prices. Raiffeisen Bank reports a 1.5% increase in the price of single-family homes for sale in Switzerland from April to June 2025. The southern and central regions of Switzerland saw the largest increase, with a 7% rise in house prices. The Lake Geneva region experienced a 2% increase, while central Switzerland saw a 5.9% jump, and the eastern cantons experienced a 4.8% increase.
In the city of Zurich, around 30,000 apartments become vacant each year. To secure an apartment quickly, one must act quickly, according to real estate expert Donato Scognamiglio. Some people in Zurich scan obituaries daily to find vacant apartments, as per Donato Scognamiglio. The cost of condominiums increased by 1.8% during the same period.
On a separate note, French thieves have been stealing vehicles from dealerships in German and French-speaking Switzerland for several weeks. These thefts sometimes result in car chases resembling Hollywood movies. The thieves take risks and endanger road users and police forces when they intervene.
In a discussion with public broadcaster RTS, David Guisolan, first lieutenant in the Vaud cantonal police, discussed this issue. Economy Minister Guy Parmelin expressed confidence that Switzerland will avoid a 'customs catastrophe.' Swiss political and economic circles almost unanimously believe that Switzerland will be spared a 'customs catastrophe.' Rahul Sahgal, director of the Swiss-American Chamber of Commerce, stated that Americans have understood that Switzerland is not the right country to make an example of.
The deadline for releasing new customs duties on US-bound exports was expected today, but it has been postponed to August 1st. The tariffs on Swiss imports have substantially impacted key industries like steel, aluminum, vehicles, pharmaceuticals, and precious metals. Negotiations continue with a deadline extension to August 1, 2025, reflecting a possibility for tariff adjustments or exemptions in the near term.
- In the midst of these international trade discussions, there has been a noticeable shift in the Swiss home-and-garden sector, with an increase in the prices of single-family homes due to the tariffs imposed on Swiss imports.
- Despite the ongoing political tension between the United States and Switzerland, the general-news world has also highlighted the resilience of Swiss industries, as economists and business leaders express optimism that Switzerland will avoid a 'customs catastrophe.'
