Finance
Switzerland to analyse implications of latest US trade probe
Published by Global Banking & Finance Review®
Posted on March 12, 2026
2 min readLast updated: March 12, 2026
Quick Summary
Switzerland is evaluating spillover effects from new U.S. trade investigations on excess industrial capacity and forced labour, even as it pushes to formalise a tariff reduction deal to 15% struck in late 2025.
Switzerland Evaluates Impact of New US Trade Probe on Ongoing Tariff Negotiations
Analysis of US Trade Investigations and Swiss Response
Background of US Tariffs on Swiss Products
ZURICH, March 12 (Reuters) - Switzerland is analysing the implications of the latest U.S. trade investigations, the government said on Thursday, as Swiss industry urged it to continue with talks aimed at finalising a preliminary trade deal struck with Washington late last year.
Switzerland was subject to the highest U.S. tariffs in Europe when U.S. President Donald Trump imposed in August a 39% duty on products imported from the country.
Progress in Tariff Negotiations
In November, Bern sealed an initial deal that cut the tariffs to 15%, mirroring the rate for the European Union. Switzerland has since begun talks to formalise that deal, which Washington has been pressing to conclude by the end of March.
New US Trade Investigations
The Trump administration said on Wednesday it was launching trade investigations into excess industrial capacity in 16 major trading partners, including Switzerland, and into allegations of forced labour.
Swiss Government's Reaction
The Swiss government said on Thursday it had received a letter from the U.S. Trade Representative on the move and that the two sides are discussing whether and how this investigation will affect the negotiations on the trade agreement.
Industry Response
Separately, industry group Swissmem said that Switzerland had not taken steps to generate excess industrial capacity.
Swissmem's Position on Industrial Policy
"Switzerland does not pursue an industrial policy aimed at artificially creating overcapacity, as other economic regions do with extensive subsidies," Swissmem said in a statement.
Market Access and Investment Conditions
It said Switzerland offered U.S. companies open market access, having eliminated its import tariffs on industrial goods, and provided favourable conditions for investors and workers.
Call for Continued Negotiations
"It is therefore all the more important that the Swiss government continues its negotiations with the U.S. on a tariff agreement and protects Switzerland as a manufacturing location from politically motivated attacks," Swissmem said.
(Reporting by Dave Graham; Editing by Emelia Sithole-Matarise)
Key Takeaways
- •Switzerland is assessing how recent U.S. probes into industrial overcapacity and forced labour could impact ongoing trade deal talks.
- •A preliminary agreement cut tariffs from 39% to 15%, and Switzerland still aims for a legally binding pact to cement stability for exporters.
- •Industry group Swissmem defends Switzerland's economic model and urges government to protect manufacturing from politically driven U.S. actions.
Frequently Asked Questions about Switzerland to analyse implications of latest US trade probe
1Why is Switzerland analysing the latest US trade investigations?
Switzerland is analysing the US trade investigations to understand their implications on ongoing tariff agreement negotiations with Washington.
2What change occurred in US tariffs for Swiss products last year?
US tariffs on Swiss products were reduced from 39% to 15% following a preliminary trade deal in November.
3Which concerns are being raised about Switzerland in the US probe?
The US is investigating excess industrial capacity and allegations of forced labour among Switzerland and 15 other trading partners.
4How has Swiss industry responded to the US investigation?
Swiss industry group Swissmem denies creating excess capacity and urges the government to continue tariff negotiations to protect Switzerland's manufacturing sector.
5What is the current status of the Switzerland-US trade agreement talks?
Negotiations to finalise the trade agreement are ongoing, with both sides discussing how the recent US trade probe might affect the deal.