Switzerland rejects US forced labour claims as tariff talks continue - Finance news and analysis from Global Banking & Finance Review
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Switzerland rejects US forced labour claims as tariff talks continue

Published by Global Banking & Finance Review

Posted on June 5, 2026

2 min read

· Last updated: June 5, 2026

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Switzerland Rejects US Forced Labour Allegations as Tariff Talks Continue

Ongoing Trade Dispute and Forced Labour Allegations

Switzerland's Response to US Allegations

ZURICH, June 5 (Reuters) - Switzerland will continue trade talks with the United States while rejecting allegations that it failed to combat imports of goods made with forced labour, the government said on Friday.

The government said it would restate its position in writing, arguing its approach focusing on supply chains was effective, as Washington considers additional tariffs of 12.5% on Switzerland.

Government's Official Statement

"The Federal Council strongly rejects the allegations made in the course of this investigation," the government said, adding that Switzerland's approach combines regulation, mandatory private-sector risk assessments and international cooperation.

Details of the US Investigation

The U.S. findings, published on June 2, followed Section 301 investigations launched in March into alleged unfair trade practices, including industrial overcapacity and enforcement against forced labour goods.

Potential Impact of Proposed Tariffs

The proposed tariffs would not take effect immediately, with interested parties first invited to submit comments ahead of a public hearing.

Current and Future Tariff Measures

The additional U.S. tariffs are likely to replace the current 10% additional tariffs that are in force until July 24, the government said, while additional tariffs may be imposed because of a U.S. investigation into overcapacity.

(Reporting by John Revill, Editing by Miranda Murray)

Key Takeaways

  • Switzerland rejects U.S. claims that it failed to prevent forced‑labour imports, emphasizing its extensive legal and regulatory framework addressing supply‐chain risks.
  • The U.S. has proposed additional tariffs of 12.5% on Swiss goods pending public consultation, aiming to replace existing 10% tariffs expiring July 24 and potentially target excess industrial capacity.
  • Despite tensions, Switzerland will continue trade negotiations with the U.S., aiming to secure a long‑term bilateral agreement.

Frequently Asked Questions

Why is Switzerland disputing US forced labour claims?
Switzerland argues its supply chain-focused approach is effective and rejects US allegations of failing to combat imports made with forced labour.
What are the potential new US tariffs on Switzerland?
The US is considering increasing additional tariffs on Swiss goods to 12.5%, replacing the current 10% tariffs.
What triggered the US investigation into Swiss trade practices?
The investigation was launched under Section 301, targeting alleged unfair trade practices, industrial overcapacity, and forced labour goods.
When would new US tariffs on Switzerland take effect?
Proposed tariffs would not take effect immediately; public comments will be collected before a public hearing is held.
How is the Swiss government responding to these allegations?
The Swiss government is restating its position in writing and emphasizing regulation, private-sector risk assessments, and international cooperation.

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