Tariffs cost jobs ETH professor warns of mass short-time work in Switzerland
The new US punitive tariffs could plunge the Swiss export industry into a crisis - with dramatic consequences for the labor market. ETH Professor Hans Gersbach warns of a wave of short-time working and relocation of production.
02.08.2025, 12:21
02.08.2025, 12:26
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- Economist Hans Gersbach warns that the US punitive tariffs of 39% could lead to short-time working and job cuts in Switzerland in the coming months.
- Key industries such as pharmaceuticals, whose export share to the USA is over 50%, would be particularly affected - the threat of production relocations exacerbates the risk.
- If no agreement is reached and the pharmaceutical industry also has to bear tariffs, Gersbach expects Swiss GDP to fall by at least 0.7%.
Swiss economics professor Hans Gersbach warns of the consequences of Trump's tariffs for Swiss jobs. If the announced 39% tariffs are introduced, he expects a "massive increase" in short-time work and job cuts in the coming months.
Because the tariffs would worsen the competitive position of Swiss producers so much, there would certainly be job losses in key industries, Gersbach said in an interview with the Tamedia newspapers.
According to the Co-Director of the KOF Swiss Economic Institute at ETH Zurich, if production were to be relocated, this would have an additional impact on the Swiss labor market.
The handling of the pharmaceutical industry in particular would now be decisive, especially as it accounts for more than half of goods exports to the USA. According to Gersbach's calculations, if this industry were also hit, it would result in a "sharp decline" in gross domestic product of at least 0.7 percent.
However, Gersbach was quoted as saying that efforts must continue to be made at full speed to reach an agreement with Trump. "The top priority now is to find a deal to avert these extreme tariffs after all."
