At the end of February 2026, the US Supreme Court ruled that the reciprocal tariffs imposed by President Trump under emergency powers were unlawful. Following this ruling, an addition tariff of 10 percent was applied to all countries for 150 days, a period which expired on 24 July 2026.
As expected, the Trump administration has turned to other legal instruments to impose country-specific tariffs. These tariffs are now based on so-called Section 301 measures. Section 301 is a US legal remedy used to address unfair trade practices such as forced labour or industrial overcapacity.
Under this framework, Swiss industrial products are now subject to a tariff of 12.5 percent, a whole 2.5 percentage points higher than the tariff applied to EU member states. This differential represents a further, and entirely unjustified, competitive disadvantage for companies in Switzerland’s tech industry operating in the US market.
Offsetting the competitive disadvantage through better framework conditions in Switzerland
The higher tariff compared with the EU hurts Swiss competitiveness. The claim that Switzerland is not doing enough to combat forced labour is unfounded. The tech industry is a high-tech sector. Its products are developed in Switzerland and, in most cases, manufactured here as well. Supplies of intermediate products and components generally come from the EU, where forced labour is not an issue. “The accusation is absurd,” says Jean-Philippe Kohl, Deputy Director and Head of Economic Policy at Swissmem. “High-tech products cannot be manufactured using forced labour.”
This competitive disadvantage can and must be offset through better framework conditions in Switzerland. Specific measures include bringing new free trade agreements into force to facilitate access to important export markets for Swiss industry. The focus is on the free trade agreements with the Mercosur states and Malaysia, as well as the further development of the agreement with China. Moreover, there should be no counterproposal to the second Responsible Business Initiative. Such a proposal would merely impose additional burdens on companies without delivering any meaningful impact. Furthermore, targeted reductions in bureaucracy would ease the burden on businesses. There is, however, no need for a specific Swiss law on forced labour. Such legislation would merely create additional bureaucracy and regulation.
Uncertainty remains
A further investigation into potential industrial overcapacity is currently under way in the US under Section 301. There is therefore a risk that Switzerland could ultimately face an even higher tariff rate. This makes a legally binding agreement with the US that does not place Switzerland at a disadvantage compared with the EU all the more important. “It would finally provide Swiss industry with somewhat greater certainty and stability once more in its business dealings with the US,” says Jean-Philippe Kohl.
For further information, please contact:
Jean-Philippe Kohl
Deputy Director and Head of Economic Policy
Tel. +41 (0)44 384 48 15 / mobile +41 (0)78 659 17 72
E-mail: j.kohlnoSpam@swissmem.ch
Ivo Zimmermann
Head of Communications
Tel. +41 (0)44 384 48 50 / mobile +41 (0)79 580 04 84
E-mail: i.zimmermannnoSpam@swissmem.ch