The Swiss economy accelerated in the three months through June, reflecting its relative insulation from the energy-price shock and the uncertainty caused by shifting U.S. tariffs.
Impact of New Tariffs on Pharmaceutical Exports
Pharmaceutical exports to the U.S. have likely been influenced by the anticipation of new tariffs, which are set at up to 15% and took effect on July 31. Ankita Amajuri, Europe economist at Pantheon Macroeconomics, highlighted this development in a recent note to clients, suggesting that front-running behavior in the market may have contributed to the increase in exports prior to the implementation of these tariffs.
In July, the Trump administration separately added new additional tariffs of up to 12.5% on many Swiss imports, replacing 10% tariffs in force since February. Swiss GDP last contracted in the third quarter of 2025, as the first round of U.S. tariffs filtered through the economy. The Swiss franc has declined against the euro since March, and investors don’t expect it to change its policy rate from the current 0% this year.
Switzerland’s central bank has said it would act to stem an uncontrolled rise in the franc. Switzerland has been less exposed to the global energy shock than other European nations. The country is less reliant on imports and has a more diverse energy mix that makes use of its hydroelectric Alpine dams.
