Switzerland confirmed it remains in negotiations with the US over a comprehensive trade agreement as Washington proposes 12.5% tariffs on Swiss imports. The Swiss economy ministry emphasized efforts to regulate long-term economic relations despite ongoing political developments in the US. The tariff proposal stems from a Section 301 investigation into forced labor allegations, targeting countries including China, India, and Japan with similar levies.

The Trump administration's move represents its largest protectionist push since earlier tariffs were struck down by the Supreme Court. Imports from Canada, Mexico, the EU, Taiwan, and the UK would face a 10% tariff, while higher rates apply to other nations. Switzerland vehemently rejected the forced labor claims, asserting its practices do not harm US manufacturers. The economy ministry dismissed the allegations as unfounded, pointing to Switzerland's commitment to fair trade practices.

Economiesuisse, Switzerland's leading business lobby, echoed the government's rebuttal, stating there is no evidence that Swiss supply chains distort US markets. The lobby raised concerns over unequal treatment compared to the EU, warning the proposed differentiation could create unfair competitive disadvantages. The business group emphasized that Swiss-German economic relations remain unharmed by such allegations.

The dispute underscores escalating trade tensions between the US and its European partners, with Switzerland caught between defending its reputation and securing favorable trade terms. As negotiations continue, the outcome could reshape transatlantic commerce and influence how other nations respond to similar US trade actions.