Switzerland disputes US forced labour claims as new tariffs take effect

Switzerland has rejected allegations of forced labor that underpin new U.S. tariffs, which took effect on July 24 with rates up to 12.5% on Swiss imports. The Swiss government stated it takes note of the announced tariffs but disputes the underlying reasons, asserting that forced labor is already prohibited under its constitutional, civil, and criminal laws. Swiss business association Economiesuisse echoed this sentiment, calling the U.S. decision 'neither understandable nor justified' and stating there is no evidence that Swiss supply chains are being used to smuggle goods produced through forced labor into the U.S. market. The association further noted that the new tariffs place Swiss companies at a disadvantage compared to competitors from regions with lower tariff rates, such as the European Union and Britain, and increase export costs without eliminating existing uncertainty related to a separate U.S. investigation into alleged overcapacity in industrial production.

The European Commission gave a guarded welcome to the new tariffs, stating the outcome aligns with a trade deal struck a year ago. The U.S. imposed tariffs of 10% and 12.5% on goods from 60 trading partners, including the EU and China, citing insufficient measures against forced labor. The EU noted positively that the outcome is in line with U.S. tariff commitments agreed under the EU-US Joint Statement, which provides positive momentum to continue work on further tariff exemptions and deepening cooperation. The spokesperson said the EU expected Washington to continue abiding by the terms of the deal struck last July, which is essential for providing markets with stability and predictability. The EU has previously rejected U.S. allegations that it is not acting against forced labor.