Shock - but no awe
Tariffs shake Switzerland, On's Swiss betrayal, gig money
Dear Insider,
It should have come as no great surprise. And yet…
Donald Trump announced sweeping tariffs on the global economy, taking aim at friends and foes alike.
That included Switzerland.
The scale was shocking - more than 30% on Swiss exports to the USA. All without a clear justification.
How will the world look when the dust settles? As the Swiss government struggles to react - the answer remains unclear…
Read on,
Ian
P.S. Looking for “even” more?
How about the banks doing crypto in Switzerland, the private clubs where Swiss titans get together…
…and the VC investors making big bets? Check out more Swiss insights here.
💥A big hit
A short primer on the effect of Donald Trump’s tariffs on Switzerland and the Swiss economy…
It’s getting ugly…
This week, Donald Trump declared "Liberation Day" and reignited a global trade war.
With blanket 10% tariff on all imports, things looked bad enough for the global economy.
It turned out worse than expected for Switzerland: a staggering 31% tariff, higher than the 20% levied on the EU and three times the rate for the UK.
Trump’s tariff bomb marks one of the most aggressive U.S. trade moves against Switzerland in modern memory.
How will the country react?
Swiss government on high alert
Swiss President Karin Keller-Sutter called for calm but voiced “serious concern.”
In a press conference held on April 3, Keller-Sutter and Economy Minister Guy Parmelin announced that Switzerland will not take immediate countermeasures against the sweeping U.S. tariffs announced by Donald Trump.
Economy Minister Guy Parmelin, also critical of the tariff logic, noted that 99% of U.S. imports into Switzerland are already duty-free.
He argued the U.S. action lacks justification and confirmed his department is preparing for negotiations with Washington.
Economiesuisse fires back
Switzerland’s leading business lobby wasn’t subtle: The tariffs are “harmful” and “unjustified.”
They reminded Washington that Switzerland scrapped its industrial tariffs in 2024 and already maintains lower import duties than the U.S.
One small relief: Swiss pharmaceutical exports—over 50% of total exports to the U.S.—are exempt.
Political Pressure Mounts in Bern
Swiss politicians wasted no time going on the offensive.
SP Co-President Cédric Wermuth is calling for a united European counterstrike: “Trump’s tariffs demand a collective response.”
GLP’s Corina Gredig is questioning Bern’s independent path from the EU, now that the EU faces lower tariffs than Switzerland.
Markets react immediately
The Swiss watch industry took the first hit.
Richemont shares dropped 4%
Swatch Group fell 4.3%
Luxury goods are squarely in Washington’s crosshairs—and investors know it.
Enjoying this edition? Let me know…
Feel free to give me your feedback on this edition of The Swiss Insider - is there some aspect of Swiss-American relations that you would like to know more about?
Or is there something missing?
On’s “cross” purposes
Swiss sneaker giant On, backed by tennis legend Roger Federer and fresh off a CHF 2.3 billion revenue year, is under fire.
And it’s not about the soles on its shoes - not exactly.
The issue? That little Swiss cross on their shoes.
The problem is - the shoes happen to be made in Asia.
Enter the Swissness Enforcement Association (yes, that’s a real thing) which is accusing On of misusing Swiss symbols.
Under Swiss law, any product flaunting Swiss branding must have at least 60% of its manufacturing costs in Switzerland.
And this is where it gets tricky…
On’s design and R&D is done in Switzerland. But its production? Outsourced to Vietnam and Indonesia.
So while the “tech” might “technically” be considered Swiss, the stitching isn’t - which many people would consider misleading.
The Swissness watchdogs claim ON is cashing in on the “Swiss Made” image without actually making anything in Switzerland.
All indications point to an upcoming legal marathon….no pun intended.
The golden gig man
There is a “gig economy” - even in Swiss banking.
Case-in-point: Julius Baer’s temporary CEO Nic Dreckmann.
The former CEO who took over after Philipp Rickenbocker was forced out, pocketed a cool CHF 5.8 million during his short 11-month stint at the top.
To put this in perspective:
That’s nearly 3x his COO salary from the year before.
Almost on par with the CHF 6.03 million earned by Rickenbacher in 2022—before the bank’s troubles exploded.
How does Dreckmann deserve such a compensation package?
Dreckmann took the reins after Rickenbacher stepped down amid backlash over the bank’s exposure to collapsed real estate tycoon René Benko.
He wasn’t meant to stick around—Julius Bär said from the start they’d hire externally.
But while the bank hunted for a replacement - they finally picked ex-Goldman Sachs banker Stefan Bollinger, Dreckmann got a golden check for “steering the bank through stormy waters.”
A Chart (or Two) is Worth…
Luxury goods may be in Donald Trump’s crosshairs - but they have held up pretty well in recent years, especially luxury watches, according to the ChronoPulse Watch Index.
The Bonus
✂️ Italian cut job - UBS continues to trim its headcount as the monster bank finds its way forward - now with 180 posts in Italy getting the axe. (Link)
⚙️Fully connected - Bucher Connect Service-Plattform, an integrated Internet-of-Things (IoT) platform has taken home the Master of Swiss Web 2025 award. (Link)
Ian, thanks a lot for this once a week view from Switzerland