Swiss Economy Sees Fastest Growth in Two Years as Firms Race to Beat U.S. Tariffs

Switzerland experienced its fastest economic expansion during the last two years because exporters rushed to deliver goods to the United States before Donald Trump activated new trade tariffs.

The government announced that Gross domestic product increased by 0.8% during the first quarter compared to the previous period while surpassing the country's typical quarterly growth rate of 0.4%. The pharmaceuticals and chemicals sectors together with watch and precision instrument manufacturers accelerated their exports during the first quarter because they wanted to avoid the effects of Trump's 31% tariff on Swiss goods that he announced in April.

Swiss manufacturers together with politicians continue to seek a permanent solution because of the current 10% tariff that stems from the 31% tariff announced by President Trump. The State Secretariat for Economic Affairs reported that U.S. export numbers increased significantly because businesses might have accelerated their shipments due to U.S. trade policy changes.

Switzerland experienced its largest economic growth since early 2023 while facing rising doubts about its leading export destination. The rapid increase in tariffs has caused smaller manufacturers to worry about their customers who now show reluctance to place new orders.

Nicola Tettamanti who leads Swissmechanic stated that business confidence remains stable despite current demand but the strong franc together with trade tensions continue to affect operations. Tettamanti stated that many businesses have either frozen or terminated their machinery and equipment orders.

The strong first-quarter performance in Switzerland may hide manufacturing sector concerns about an unstable worldwide business environment.