Swiss trade surplus largest in three months

Switzerland's trade surplus widened slightly to CHF 4.3 billion in July 2025 from CHF 4.2 billion in the prior month, marking the largest surplus since April and underscoring the country’s persistent export strength despite mounting trade headwinds.

Exports slipped 2.7% month-on-month to CHF 22.2 billion, reflecting weaker overseas demand in key industries. Jewelry and watch shipments, a cornerstone of Swiss exports, fell sharply as costume and fine jewelry declined 9.7%, while chemical and pharmaceutical products dropped 6.8%.

Export weakness was particularly pronounced in Austria (-36.9%), Ireland (-21.1%), and South Africa (-20.5%). Meanwhile, exports to the United States slowed dramatically, rising just 1.1% compared with June’s upwardly revised 25.2% surge, as the newly imposed 39% US tariff on Swiss goods weighed on competitiveness.

The tariff—one of the steepest levied against any trading partner—was introduced after bilateral trade negotiations failed to yield concessions, curbing momentum in what had previously been a strong export destination.

Imports, however, fell even faster, declining 4.2% month-on-month to CHF 17.9 billion. The drop was led by energy purchases (-12.2%) and chemical and pharmaceutical products (-11.7%), alongside steep declines from major suppliers such as Ireland (-62.7%), Australia (-48.1%), and Spain (-28.6%).

The slowdown in imports partly reflects weaker domestic demand, as Switzerland’s consumer and industrial sectors adjust to tighter financial conditions and higher energy prices earlier in the year.

Despite the monthly fall in both exports and imports, the faster decline in imports helped widen Switzerland’s trade surplus. Looking ahead, trade performance will likely remain volatile as global conditions shift. US tariffs pose a significant risk to Swiss exporters, while ongoing geopolitical tensions and fluctuating energy markets could further disrupt trade flows. However, Switzerland’s resilient pharmaceutical and luxury goods sectors may continue to provide some cushion against external shocks, supporting its position as a net exporter.