Trump’s Tariffs Threaten the End of Neutrality

This article written by our Executive-In-Residence Fellow Mr Ali Ahmadi has been ranked by Foreign Policy as the 5th most important global trade article of 2025.

Now even Switzerland can’t escape great-power politics.

When Switzerland celebrated its 734th National Day in August, President Karin Keller-Sutter faced an audience expecting reassurance about the country’s economic stability and diplomatic standing amid escalating global trade tensions. Instead, she delivered news that would fundamentally challenge the basic pillars of Swiss political identity. The United States had imposed 39 percent tariffs on Swiss goods—more than double the rate facing the European Union and among the highest levied on any developed economy.

The shock was not merely economic. For a nation built on the pillars of neutrality, direct democracy, and financial prudence, these tariffs represented something more existential, proof that Switzerland’s carefully cultivated exceptionalism no longer offered protection in an era of economic coercion.