Is the US tariff wall impenetrable for Swiss businesses?

Rising trade barriers demand bold restructuring to safeguard market access and avoid supply chain collapse.

In brief

• The 39% US tariff on Swiss imports signals a lasting turn toward protectionism and demands rapid, strategic business responses.
• Swiss firms must elevate international trade strategy to a core corporate function, with due attention to supply chains, pricing and compliance.
• Automation, scenario planning, and integration of tax and international trade functions are critical to surviving escalating global trade volatility.

The Trump administration’s Liberation Day shockwave has landed – and for Swiss exporters, it’s going to be a tough pill to swallow. The sweeping 39% tariff on all goods of Swiss origin imported to the United States imposed by the Trump administration and in effect since 7 August 2025 has blindsided policymakers and businesses alike, triggering widespread alarm across the Swiss economy. With profit margins threatened, supply chains disrupted and US customers potentially abandoning Swiss suppliers for cheaper alternatives, the ripple effects are poised to hit fast and hard.

This isn’t just a bump in the road – it’s indicative of a global shift toward aggressive protectionism. And Swiss companies can’t afford to wait and see what happens next. Those that act now, decisively and smartly, will be far better positioned to weather the current storm and whatever geopolitical tremor comes next.

Escalating trade tensions

Despite last-minute diplomatic efforts, the Swiss government was unable to avert the unexpectedly high tariff increase imposed by the United States on Swiss imports. The Trump administration justified the hike by citing the US goods trade deficit with Switzerland (USD 38.3 billion in 2024), overlooking the fact that in particular digital services exported by US firms significantly offset the goods gap. Indeed, the US services trade surplus with Switzerland was USD 29.7 billion in 2024, up USD 30.9 percent (or USD 7.0 billion) on 2023.

Washington also points the finger at non-tariff trade barriers. Switzerland presumably failed to match the kind of incentives the EU put on the table in its recent negotiations in Scotland, which reportedly included USD 600 billion in foreign direct investment (FDI) and a commitment to import USD 250 billion in US energy over three years.

But even if Bern had tried to offer EU-style assurances, it’s unclear how deliverable or binding they would have been – a view echoed in a Handelsblatt interview (7 August) with Markus Krebber, CEO of RWE, one of Europe’s largest producers of energy. Krebber criticized Ursula von der Leyen’s tariff deal with Trump, pointing out that “the market decides where we buy and sell.”

In addition, Switzerland’s hands are tied by commitments made in its agreements with other major trading partners. The array of bilateral agreements between the EU and Switzerland that could be viewed by the United States as non-tariff barriers to trade ranges from technical and conformity requirements to agricultural and biotech rules.

Now that diplomacy efforts have failed, business leaders can no longer treat trade policy as a distant, slow-moving concern. The rules are changing – and so must corporate strategy.

Swiss companies need to act fast

The 39% tariff is a game-changer because it hits the Swiss export-driven economy across the board, regardless of sector or product type. Moreover it leaves little to no time to adapt to the new reality and it signals a broader policy shift, not just a temporary retaliatory measure. Recently amassed stockpiles won’t last forever. Companies with goods sitting in US warehouses might have bought themselves a few weeks, but the new tariff policy will soon impact every pricing discussion, customer order and budget forecast.

Though time is of the essence, Swiss companies need to move with strategic foresight, rather than reactively. No one can predict what the Trump administration will do next, but companies that upgrade their global trade team to a strategic function (on par with tax, legal and finance) will be better positioned to navigate the next disruption, whether carbon tariff, digital tax or geopolitical flare-up.

No-regret moves Swiss companies should do now

In the following, we briefly outline eight decisive, no-regret actions Swiss businesses can take to blunt the impact of the tariff hikes and future-proof their operations.

1. Review customs valuation, classification and origin aspects

Companies must refine their analytics of product and input flows to include a detailed mapping of goods – from manufacturing origin to end customer. That means drilling down into US customs data, understanding every tariff touchpoint and modeling cost impacts.

• First-sale planning: Where viable, apply tariffs to the price of the first sale in the supply chain, not the resale or last sales price.
• Origin review and documentation: For goods assembled in Switzerland using parts sourced from third counties it is essential to ensure proper documentation of calculations to secure compliance and pin point any potential for optimization with respect to origin status.
• Alternative routing and final finishing: Shift final assembly to a third country to legally change product origin (i.e. generally apply rule of last substantial transformation). Consider assembly in the US to reduce the valuation basis of unassembled parts and components.
• Use Chapter 98 duty exemptions: Special US customs provisions exist for products temporarily imported for repair or re-export.

Granted, these aren’t easy fixes. They require technical analysis. However, the savings can be substantial.

2. Deploy transfer pricing and valuation strategies

The intersection of transfer pricing and customs valuation is now a critical pressure point. Swiss multinationals may consider:

• Using downward transfer pricing adjustments where reconciliation mechanisms are available in the United States.
• Clearly separating dutiable and non-dutiable components, supported by appropriate transfer pricing and profit contribution analysis. 
• Unbundling services and goods to avoid overpaying tariffs on services erroneously factored into the import valuation.
• Excluding international / overseas and post-import freight and logistics cost from the customs valuation basis, where the invoice value already includes such costs.  
• Proactively monitoring transfer pricing margins and taking necessary action to adjust intercompany pricing to stay within the benchmarked margin range. 

The goal is to minimize the dutiable base without falling afoul of compliance obligations and US customs regulations. Accordingly, companies need to review their customs valuation basis for US imports in accordance with applicable US regulations to address the impact of tariffs.

3. Rethink distribution structures and related-party risks

Exclusive distribution agreements, particularly with US-based subsidiaries, should be reviewed and restructured to reduce customs exposure. Conceivable options include:

• Rewriting distribution rights to reflect arm’s length pricing and reduce the appearance of related-party transactions.
• Non-resident importer (NRI) models: These allow Swiss companies to retain control over how goods are classified, valued and cleared into the United States – even without a physical presence.

These changes can also limit regulatory scrutiny and offer more control over cost pass-throughs. However, in light of potential local US tax obligations for the non-resident importer, a full supply chain analysis is recommended.

4. Tap into foreign trade zones (FTZs)

FTZs allow companies to defer, reduce or even eliminate duties on imported goods that are either re-exported or transformed in the United States before sale.

Swiss companies with US manufacturing or distribution hubs should urgently evaluate:

• Whether FTZ status makes financial sense
• How to re-engineer product flows to take full advantage of any untapped potential
• Whether bonded warehouse strategies are still viable – although some strategies may have been ruled out by recent executive orders

While not every company qualifies, the savings potential for qualifying organizations is massive.

5. Build resilient scenarios – and be ready to pivot

Contingency planning is no longer a luxury. Every Swiss company affected by the tariff should have tested plans for:

• Sourcing alternatives: Shift procurement to non-affected countries
• Product redesign: Start contemplating modifications to specifications to reclassify products under lower tariff codes
• Market exit: In some cases, the US market may no longer be sustainable. Better to exit early than bleed out slowly

Scenario planning must become an always-on business capability, not a one-time workshop.

6. Tear down the wall between tax and global trade

Too often, corporate tax and international trade functions operate in silos. In a volatile trade policy environment, the repercussions can be huge. Tariff exposure can now rival corporate tax obligations, and the risks – if mismanaged – are real.

Swiss companies should:

• Create a joint tax/trade steering committee
• Share platforms for data, risk modeling and scenario tracking
• Align ESG, sourcing and pricing strategies across legal and functional lines

Integrating these teams means fewer blind spots and faster, more strategic decisions.

7. Reprice and reposition product range with US customers

Swiss companies can’t absorb the full tariff hit alone. Some may be able to renegotiate prices with US customers; others will need to explore shared cost arrangements, particularly with long-standing partners. In all cases, transparency is critical, both to maintain trust and to clearly show how tariffs affect pricing, enabling tailored solutions.

Where tariffs create a competitive disadvantage, this likewise has to be addressed proactively and collaboratively. To avoid compromising long-term partnerships, open dialogue with customers, strategic adjustments to pricing and joint efforts to manage cost impacts are key.

8. Invest in trade tech and automation

Trade volatility is the new normal. Manual customs processing and data analysis is no longer a viable option. Swiss companies must invest in:

• AI-driven classification engines
• Automated tariff modeling tools
• Real-time restricted-party screening
• Training and change management to ensure adoption
• Trade analytics solutions to assess the current and potential impact of tariffs, besides identifying duty saving opportunities.

State-of-the-art international trade tracking, analytics and automation technologies are essential to handle persistent volatility, streamline compliance and uncover cost-saving opportunities.