Swiss government slashes growth outlook as Trump tariffs put ‘heavy burden’ on economy

Switzerland’s government on Thursday cut its 2026 economic forecast for the country, citing the Trump administration’s punitive tariffs as a “heavy burden” on its industries.

Officials held their forecast for the Swiss economy to expand by 1.3% this year, but noted that this level of economic growth was “significantly below-average” for the country. For next year, they are now forecasting gross domestic product (GDP) growth will slow to 0.9% – down from a previous 2026 forecast of 1.2% growth.

“Higher U.S. tariffs have further clouded the outlook for the Swiss economy,” officials said in a news release on Thursday.

Switzerland is an export-driven economy, and the U.S. was the top foreign destination for its goods in 2024. Back in August, Switzerland was hit with 39% tariffs on goods sent to the U.S. after a Swiss delegation failed to secure a deal with U.S. officials — one of the highest country-specific rates imposed by the Trump administration.

The country’s biggest exports include watches, pharmaceuticals and precious metals — but the country is also renowned for its luxury goods, chocolate and skincare products. Branded and patented pharma products are newly subject to 100% tariffs upon entry to the U.S., unless their manufacturers have or are building production facilities in America.