Trump Proposes 12.5% Tariffs on Switzerland Over Forced Labor, June 04

The Trump administration proposed tariffs of 12.5% on Switzerland and 44 other trading partners on June 3, 2026, citing their failure to enforce bans on forced labor imports. The U.S. Trade Representative determined that 60 economies failed to impose effective prohibitions on goods made with forced labor, creating unfair competition for American workers. The tariffs remain subject to public comment and are not yet in effect.

How the Tariffs Are Divided

The Trump administration split the tariffs into two tiers based on enforcement efforts. Switzerland faces a 12.5% additional tariff alongside 44 other countries including China, Japan, India, South Korea, and Brazil. Sixteen economies including Canada, Mexico, the European Union, Taiwan, and the United Kingdom face 10% tariffs for having some forced labor prohibitions or commitments in place. The tariffs exempt key products like coffee, beef, semiconductors, and rare earth minerals.

Switzerland’s Response to the Allegations

Switzerland’s business federation, Economiesuisse, rejected the forced labor accusations as unfounded. The group stated that Switzerland has constitutional, civil, and criminal laws prohibiting forced labor and has ratified relevant International Labour Organization conventions. Switzerland implements a risk-based approach to supply chain due diligence rather than a blanket import ban. Chief economist Rudolf Minsch noted that the 2.5% difference between Switzerland’s 12.5% tariff and the EU’s 10% tariff is manageable compared to last year’s 39% tariff on Switzerland versus 15% on the EU.

Why Trump Is Using This Strategy

The proposed tariffs allow Trump to replace revenue lost when the U.S. Supreme Court struck down sweeping global tariffs in February 2026. The new tariffs are grounded in Section 301 of the Trade Act of 1974, which addresses unfair trade practices. U.S. Trade Representative Jamieson Greer stated that the failure to address forced labor imports creates unfair competition for American workers. The tariffs are subject to public comment and hearings beginning July 7.

What Happens Next

The proposed tariffs are not yet in effect. The Trump administration opened a public comment period and scheduled public hearings for July 7 to review the proposal. Swiss officials said they remain in talks with the U.S. government. Planning certainty matters more to Swiss companies than the exact tariff rate, according to business leaders.

Final Thoughts

Switzerland faces a 12.5% tariff on most exports to the U.S. unless the country strengthens forced labor enforcement. The tariff difference from the EU is smaller than last year’s punitive rates, but uncertainty about future policy remains a concern for Swiss exporters.

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