On September 2, 2025, during a bilateral meeting in Berlin between Swiss President Katrin Keller-Sutter and German Chancellor Friedrich Merz, the topic of Switzerland potentially joining the European Union (EU) was explicitly addressed.
Merz stated that Swiss entry into the EU is “not on the agenda,” emphasizing instead the need for closer cooperation between Switzerland and the EU to present a united front against the escalating US trade policies under President Donald Trump. This comes in the wake of the US imposing a steep 39% tariff on Swiss imports, which took effect on August 7, 2025, after negotiations failed to yield a more favorable deal for the Alpine nation.
The US tariffs represent one of the most punitive measures in Trump’s global trade reset, targeting Switzerland’s significant trade surplus with the US—estimated at around $38.5 billion in goods for 2024 (though this shrinks to about $22 billion when services are included).
Key Swiss exports affected include pharmaceuticals (temporarily exempt but at risk), watches, machinery, precision instruments, chocolate, and even gold refining, which distorts trade data due to Switzerland’s role as a global refiner rather than producer.
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The US justified the 39% rate—far higher than the 15% negotiated by the EU, 10% for the UK, or similar rates for Japan and South Korea—by citing Switzerland’s alleged refusal to make “meaningful concessions” on trade barriers, despite Switzerland’s unilateral elimination of industrial tariffs on US goods in January 2024, allowing over 99% of US imports to enter tariff-free.
Switzerland’s economy, heavily reliant on exports (with the US accounting for about 16-18% of total exports), faces severe repercussions. Analysts estimate a potential GDP hit of 0.6% to 2% depending on whether pharmaceuticals are included, alongside risks to tens of thousands of jobs in sectors like manufacturing and luxury goods.
Swiss officials, including President Keller-Sutter, expressed shock after a failed phone call with Trump and a fruitless trip to Washington, where she met Secretary of State Marco Rubio but not key trade figures. The government has pursued negotiations, offering increased US investments (up to $150 billion) and potential purchases of US liquefied natural gas, but these fell short.
No retaliatory measures, such as canceling a $6 billion F-35 jet deal, have been enacted, with focus instead on relief for affected businesses. Switzerland’s relationship with the EU is already deeply integrated through a web of bilateral agreements covering trade, free movement of people, and participation in the European Economic Area (EEA) for certain sectors, but full membership has long been off-limits due to domestic priorities.
Swiss President Keller-Sutter highlighted during the Berlin meeting that neutrality is “deeply anchored in the Swiss population” and forms a core part of national identity. Joining the EU would require adopting the bloc’s common foreign and security policies, conflicting with Switzerland’s tradition of armed neutrality since 1815.
Any EU accession would likely trigger a national referendum, where polls show support hovering around just 17-20%. Past votes, like the 1992 rejection of EEA membership, underscore public wariness of ceding control over immigration, agriculture, and regulations to Brussels.
Switzerland prefers “cherry-picking” specific deals over wholesale membership, as seen in recent overhauls of EU-Swiss trade pacts approved in late 2024. Chancellor Merz echoed this by advocating for relations “as close as possible” without pushing for accession, noting excellent bilateral ties with Germany, Switzerland’s largest trading partner.
The tariff disparity has amplified calls from some German lawmakers and economists for Switzerland to reconsider its EU stance, arguing it leaves the country vulnerable as a non-member facing higher US duties than the bloc. However, Merz’s comments signal that even amid US pressures, EU leaders are not aggressively pursuing Swiss membership, focusing instead on collaborative responses like joint lobbying against US tariffs on steel and aluminum (still at 50% for the EU).
Keller-Sutter emphasized partnering with “like-minded” European nations to uphold a “rules-based and values-based order,” aligning with Merz’s view that the tariffs provide “all the more reason for us in Europe to move closer together.” While the tariffs have shattered some Swiss complacency about its “splendid isolation,” prompting psychological and economic shocks, they haven’t shifted the EU membership debate meaningfully.
Swiss industry groups like Swissmem and EconomieSuisse warn of long-term damage to competitiveness, especially against EU rivals with lower tariffs, but the government remains committed to bilateral solutions. Ongoing talks with the US could still yield reductions, similar to how other nations negotiated down from initial threats.