US tariffs hit Swiss exports, rating stays 'AAA': Fitch

The US is Switzerland’s second-largest export market after the EU. Exports are dominated by high-value goods, with pharmaceuticals accounting for 30 per cent of shipments to the US in 2024. Pharmaceutical sales to the US averaged 2 per cent of Swiss nominal GDP over the past decade, underscoring their importance to growth, Fitch Ratings said in a release.

Authorities are considering targeted support for industries hit by tariffs, which could raise fiscal costs. Still, Fitch affirmed Switzerland’s ‘AAA’/Stable rating. It expects Switzerland to seek greater foreign direct investment (FDI) in the US to secure tariff relief, rather than retaliating with tariffs of its own. Switzerland scrapped most industrial import tariffs in 2024, meaning nearly all US goods already enter duty-free.

Fitch cautioned that reduced external competitiveness could weigh on the economy over time, but the likelihood of a rating downgrade remains low.

ALCHEMPro News Desk (HU)