November 17, 2025, 09:04November 17, 2025, 09:29
US President Donald Trump’s tariff hammer against Switzerland left a clear mark on the local economy in the third quarter. This can be seen in the gross domestic product (GDP), which shrank by 0.5 percent on an adjusted basis in the third quarter compared to the previous quarter.
This emerges from the initial estimate published on Monday by the State Secretariat for Economic Affairs (Seco). It is said that the chemical and pharmaceutical industry in particular recorded a significant decline in the third quarter. While industry as a whole recorded negative development, the service sector grew only below average.
This means that economic development was significantly worse than economists expected. They had already had a hard time making an assessment in advance, and their estimates were correspondingly far apart. In a survey by the AWP news agency, the range ranges from -0.3 percent to +0.2 percent.
As a reminder: In the middle of the third quarter, on August 1st, Trump imposed import tariffs of 39 percent on Switzerland – one of the highest levels ever. The decision was a shock and caused great uncertainty in broad circles of the local economy, but especially in sectors that are heavily dependent on exports. The first effects or signs of slowdown were quickly visible in the sharp decline in export figures from the watch and tech industries.
This means that the slowdown in the Swiss economy is continuing at an accelerated pace. Growth had already shrunk to a meager 0.2 percent in the second quarter, after an increase of 0.8 percent in the first quarter of the year.
The current data is based on a flash estimate from Seco. Basic data that is still incompletely available is supplemented with forecast values. Complete and updated data available later could still change the outcome. The official estimate for the third quarter will be published on November 28th. (dab/sda/awp)