Threatening Swiss employment: Potential loss of up to 20,000 jobs due to US tariffs

The State Secretariat for Economic Affairs (SECO) has updated its economic scenario, indicating a weaker growth in the Swiss economy due to the impact of US tariffs. According to the updated scenario, the Swiss economy's growth forecast for 2026 has been revised downwards.

The tariffs, which took effect on August 1st, are expected to have a significant impact on the Swiss economy, particularly on export-heavy sectors such as metallurgy, chemicals, pharmaceuticals, medical instruments, and watchmaking. UBS study estimates up to 20,000 job losses in Switzerland due to these tariffs.

The Swiss cantons most affected by these job losses are Neuchâtel and Nidwalden, due to their high percentage of exports to the USA, particularly in sectors like watches and technology. Basel, the hub of the pharmaceutical industry, will also be heavily affected. Zurich, Geneva, Zug, and Basel-Stadt are comparatively less affected due to their larger service sectors. The cantons of Geneva and Vaud will be less affected as their exports are less sensitive to the American market.

Thomas Veraguth, UBS economist, stated this. He also mentioned that the Swiss economy is particularly vulnerable to trade barriers, with varying degrees of vulnerability across cantons.

The slow growth is expected to be more pronounced in 2026. Neuchâtel and Jura, the centre of watchmaking, will also be heavily affected by job losses. The updated scenario shows that the Swiss economy will likely grow more slowly due to higher US import tariffs.

The statement from SECO specifically mentions the impact of US tariffs on the Swiss economy in 2026. The Swiss economy's growth in 2026 is expected to be affected by US tariffs, according to the updated scenario from SECO. The negative effect of US tariffs on the Swiss economy in 2026 has also been highlighted by the statement from SECO.