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Switzerland disputes US forced labour claims as new tariffs take effect - Finance news and analysis from Global Banking & Finance Review
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Switzerland disputes US forced labour claims as new tariffs take effect

Published by Global Banking & Finance Review

Posted on July 24, 2026

2 min read

· Last updated: July 24, 2026

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Switzerland Rejects US Forced Labour Claims as New Tariffs Take Effect

Swiss Response to US Tariffs and Forced Labour Allegations

Official Swiss Government Statement

ZURICH, July 24 (Reuters) - Switzerland takes note of the announced additional U.S. tariffs but rejects allegations underlying the forced labour investigation, the government said on Friday.

With tariffs of up to 12.5% on Swiss imports, effective July 24, the United States is still adhering to a joint statement of November 2025, the Swiss statement added.

Reaction from Swiss Business Association

Economiesuisse's Position on Forced Labour Allegations

The decision to impose tariffs on Swiss imports based on allegedly insufficient measures against forced labour is neither understandable nor justified, Swiss business association Economiesuisse said.

Denial of Forced Labour in Swiss Supply Chains

"There is no evidence that Swiss supply chains are being used to smuggle goods produced through forced labour into the U.S. market," the group added, calling allegations of forced labor unfounded.

"Forced labour is already prohibited in Switzerland under constitutional, civil and criminal law."

Impact of Tariffs on Swiss Companies

The U.S. decision puts Swiss companies at a disadvantage to competitors from regions with lower tariff rates, such as the European Union and Britain, Economiesuisse added.

"The new tariff rate increases the costs of Swiss exports without eliminating the existing uncertainty," the group said, referring to an ongoing Section 301 investigation by the U.S. into alleged overcapacity in industrial production.

(Reporting by Ariane Luthi, Editing by Miranda Murray)

Key Takeaways

  • The United States enacted fresh tariffs under Section 301, replacing the temporary 10% global surcharge, targeting Switzerland with up to 12.5% duties due to purported forced‑labour enforcement gaps
  • Switzerland and business federation Economiesuisse firmly dispute the forced‑labour allegations, noting robust Swiss laws and supply‑chain oversight already prohibit forced labour and arguing the U.S. case lacks evidence
  • The tariffs place Swiss exporters at a competitive disadvantage compared to EU and UK counterparts, increasing costs and compounding uncertainty amid ongoing trade talks and investigations

Frequently Asked Questions

Why did the US impose new tariffs on Swiss imports?
The US imposed tariffs of up to 12.5% on Swiss imports citing insufficient measures against forced labour in Switzerland’s supply chains.
What is Switzerland’s response to US forced labour claims?
Switzerland rejects the US allegations of forced labour, stating there is no evidence to support the claims and that forced labour is already illegal under Swiss law.
How do the new US tariffs affect Swiss businesses?
The tariffs increase export costs for Swiss companies and place them at a disadvantage compared to competitors from regions with lower tariffs, such as the EU and Britain.
What ongoing investigation is mentioned in relation to the tariffs?
The tariffs are tied to an ongoing Section 301 investigation by the US into alleged overcapacity in industrial production and forced labour in supply chains.

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