Swiss trade surplus smallest in 17 months

Switzerland's trade surplus significantly narrowed to CHF 2.0 billion in May 2025, a substantial drop from the downwardly revised CHF 5.4 billion recorded in the preceding month. This marked the smallest surplus witnessed since December 2023, reflecting a notable contraction in export performance.

The primary driver behind this narrowing surplus was a sharp 13.6% month-on-month decrease in exports, which fell to CHF 21.0 billion. This decline was largely attributable to a significant reduction in sales of key Swiss products. Chemical-pharmaceutical products experienced an 18.9% slump, while watches saw an even more dramatic plunge of 21.1%.

A major contributing factor to the export woes was the impact of tariffs imposed by the United States. Shipments to the US plummeted by an alarming 41.7%. This steep decline was directly linked to additional tariffs implemented, with a 10% tariff applied from April 5th and a further 21% from April 9th, bringing the cumulative tariff on Swiss goods to 31%. Beyond the US, exports also saw substantial declines to other European partners, including Czechia (-37.4%), Slovenia (-31.4%), and Ireland (-26.6%).

Concurrently, imports displayed a modest increase of 0.8%, reaching CHF 19.0 billion. This rise was primarily fueled by higher purchases of energy carriers, which surged by 15.4%, and an 8.1% increase in chemical-pharmaceutical product imports. Examining key trading partners, Switzerland saw a significant surge in imports from Saudi Arabia (+220%), Ireland (+109%), and Singapore (+59.5%).

The overall trade picture for May 2025 highlights the increasing vulnerability of Switzerland's export-oriented economy to global trade tensions and specific protectionist measures.

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