Switzerland said on Thursday it is analysing the implications of the latest U.S. trade investigations as Swiss industry urged Bern to continue talks aimed at formalising a preliminary trade deal with Washington reached late last year.
The Swiss government received a letter from the United States Trade Representative notifying it of the investigations. Discussions are ongoing to determine whether and how the probe will affect the negotiations on the trade agreement.
Background on US Tariffs and Previous Deal
Switzerland faced the highest U.S. tariffs in Europe after Donald Trump imposed a 39 percent duty on Swiss imports in August. In November, Bern reached an initial deal with Washington to cut tariffs to 15 percent, aligning with the European Union’s rate.
Since then, Switzerland has engaged in talks to formalise the agreement, with the U.S. pressing to conclude the deal by the end of March.
Scope of the Latest US Investigations
On Wednesday, the Trump administration announced investigations into excess industrial capacity in 16 major trading partners, including Switzerland, as well as allegations of forced labour.
Swiss industry group Swissmem stressed that Switzerland has not pursued policies aimed at generating excess industrial capacity. “Switzerland does not pursue an industrial policy aimed at artificially creating overcapacity, as other economic regions do with extensive subsidies,” the group said.
Swissmem highlighted that the country provides open market access to U.S. companies, has eliminated import tariffs on industrial goods, and offers favourable conditions for investors and workers.
Industry Urges Continuation of Trade Talks
Swissmem said the government should continue negotiations with the U.S. to finalise the tariff agreement and defend Switzerland as a manufacturing hub against politically motivated trade actions.
The trade probe adds uncertainty to ongoing discussions, but the preliminary deal remains a foundation for further negotiations. Bern must now balance responding to the U.S. investigations while protecting domestic industrial interests.
Analysis
The latest U.S. probe underscores ongoing tensions in bilateral trade relations. While Switzerland has largely aligned its tariffs and trade policies with the EU, U.S. investigations into industrial capacity and labour practices signal that Washington may use trade policy as leverage beyond simple tariff levels.
For Switzerland, the key challenge is maintaining market access and investor confidence while avoiding punitive measures. Finalising the tariff agreement with the U.S. will be critical in stabilising relations and shielding Swiss manufacturing from politically driven trade actions.
The probe may slow negotiations but is unlikely to overturn the framework of the preliminary deal, given Switzerland’s limited industrial subsidies and strong regulatory compliance. The next few weeks will be crucial for Bern to navigate both political and economic pressures from Washington.
With information from Reuters.
