Would FIFA Have Saved Switzerland from 39% Trump Tariffs?

US President Donald Trump’s latest tariff wave is taking full effect, sending shockwaves through global trade networks and drawing backlash from key partners, particularly Switzerland.

From semiconductors to specialised industrial equipment, US supply chains are now under increased pressure as tariff hikes roll out and diplomatic efforts struggle to keep pace.

At midnight on Thursday, Trump's deadline passed – and with it came new tariffs aimed at "reciprocal" trade corrections. 

Writing on Truth Social, Trump declared: "IT’S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!"

Notable tariffs include 25% on India, targeting its oil trade with Russia, while the President says higher tariffs on Chinese goods are coming. 

That's not all; during a White House meeting with Apple CEO Tim Cook, Trump said the US is considering a 100% tariff on "all chips and semiconductors coming into the United States". He also announced plans for steep tariffs on pharmaceutical imports, saying charges could rise to as much as 250%.

These sector-specific duties directly target core parts of the US supply chain, which rely heavily on overseas suppliers. The fallout could hit US manufacturing, logistics and consumers alike.

Swiss shock

If Washington’s tariff decisions ruffled feathers across Asia, the reaction in Switzerland has been more visceral.

The announcement of a 39% tariff on Swiss exports came on August 1 and prompted widespread criticism across the country. 

The tax is based on a trade deficit calculation that Swiss officials argue is outdated. Gold exports had previously inflated the figures, but Switzerland now runs a surplus with the US.

Key exports like chocolate, luxury watches and precision industrial goods, including components for firms such as Boeing, face no clear domestic substitutes in the US, making the tariff both economically and politically baffling for Swiss leaders.

President Karin Keller-Sutter and Economics Minister Guy Parmelin travelled to Washington for talks but failed to secure a meeting with Trump.
Instead, they met with Foreign Minister Marco Rubio.

The Swiss President posted afterwards: “At today’s meeting with Foreign Minister [Marco Rubio] we discussed bilateral co-operation between Switzerland and the US, the customs situation and international issues.”

However, there was no reprieve, meaning Swiss political figures are calling for alternative approaches.

One of these suggestions is to enlist FIFA President Gianni Infantino.

National Councillor Roland Rino Büchel, a member of the Swiss People’s Party, said: “It is definitely time to bring in Gianni Infantino now without further delay to help open doors.”

Trump, who refers to Gianni as “a friend of mine,” has appeared publicly with the football chief several times this summer.

Despite the high stakes, Switzerland confirmed it would not retaliate with its own tariffs. She said the government is exploring how to support affected companies instead. 

Supply chains feel the squeeze

The Trump administration’s expanding use of tariffs hits not just allies but entire sectors vital to supply chain health.

Tariffs on semiconductors and pharmaceutical products threaten to push costs higher for US-based manufacturers, disrupt procurement cycles and create uncertainty for firms with tight just-in-time operations.

Further complexity has been added by mixed tariff treatment. Mexico, the US’s largest trading partner, has received a 90-day reprieve. Meanwhile, Canada faces a 35% hike, although goods under the US-Mexico-Canada Agreement are exempt. A deal with South Korea introduces 15% tariffs on imports, while exempting US exports. 

Trump’s administration has also moved to end the de minimis exemption, which currently allows imports under US$800 to bypass tariffs. From 29 August, these will be subject to duties as well.

These moves complicate import cost structures, force re-evaluation of supplier contracts and risk longer delays at ports as new documentation and processes are phased in.

Back in Europe, the EU is still negotiating with Washington on a broader deal, following talks in Scotland.

In Switzerland, political fallout continues, with the government now including more conservative and finance officials in its negotiating team. For now, though, the 39% tariffs remain and supply chain leaders on both sides of the Atlantic are bracing for further complications.