May 25, 2025 12:06 am
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Switzerland Faces U.S. Tariff Shock, Strengthens EU Ties


Switzerland is grappling with the fallout from U.S. President Donald Trump’s decision to impose steeper tariffs on the country compared to most of Europe. The move has sent shockwaves through Switzerland’s export-driven economy, prompting a shift towards closer ties with the European Union.
While Trump temporarily lowered the tariffs on Wednesday, advocates for stronger EU relations see this as a wake-up call. They argue that Switzerland must deepen its engagement with its European neighbors to navigate an increasingly unpredictable global landscape.
Swiss President and Finance Minister Karin Keller-Sutter highlighted the importance of stabilizing and deepening relations with the EU in a recent interview with the Neue Zuercher Zeitung. She pointed to a political deal reached in December with Brussels to overhaul their trading relationship—a step towards closer economic integration. However, the deal faces a lengthy approval process.
Neutral Switzerland has long prided itself on its low-tax business model and direct democracy, creating a stable and prosperous economy. Yet, Trump’s tariffs have underscored the need for strategic partnerships. Keller-Sutter revealed that she had spoken with EU Commission President Ursula von der Leyen to coordinate their response.
On Friday, Keller-Sutter will make history as the first Swiss finance minister to attend a regular meeting of EU finance ministers in Warsaw. Her participation comes amid Switzerland’s efforts to enhance cooperation with the EU in response to geopolitical challenges, including Russia’s war in Ukraine and the U.S.’s protectionist policies.
Industry leaders, such as Jean-Philippe Kohl of Swissmem, emphasize the urgency of approving the Brussels deal to secure Switzerland’s economic future. Kohl also advocates for expanding trade beyond Europe, pointing to opportunities in India and Southeast Asia.
The EU accord faces hurdles in Switzerland, where critics view the bloc as a bureaucratic threat to Swiss sovereignty. However, a recent parliamentary resolution with strong cross-party support suggests growing recognition of the need for closer EU ties.
As Switzerland navigates this new world order, the country’s biggest party, the Swiss People’s Party (SVP), remains a vocal opponent of EU integration. Yet even SVP leader Christoph Blocher criticized Trump’s tariffs as “absurd.”
Former Swiss ambassador Daniel Woker warns that Trump’s actions are dismantling the existing global order, which has greatly benefited Switzerland. He stresses the importance of strengthening ties with Europe to secure the country’s future.

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