Six noteworthy headlines from Switzerland that you should stay informed about this week:

In the first half of 2025, the Swiss economy faced challenges due to the 39-percent tariffs imposed by US President Donald Trump on Swiss imports. The cantons most affected by these tariffs are Neuchâtel and Ticino, primarily due to their large gold refining and export activities. The four major gold refineries located in these cantons - Metalor in Neuchâtel and Argor-Heraeus, Valcambi, MKS Pamp in Ticino - account for over one-third of global gold trade and exported 52 percent of Switzerland's gold exports (38 billion CHF) to the USA. Solothurn also has significant exports to the USA, especially in medical devices, which may be affected albeit to a lesser extent.

The Swiss economy is expected to grow more slowly in 2026 as a result of these tariffs. The State Secretariat for Economic Affairs (SECO) stated that the introduction of higher US tariffs on imports from Switzerland has worsened the economic outlook for next year. Basel, the hub of the pharmaceutical industry, Neuchâtel, and Jura, the centre of watchmaking, are the cantons most affected by job losses due to these tariffs. Up to 20,000 employees could potentially lose their jobs in Switzerland due to these tariffs. In response, the Swiss Post has temporarily stopped accepting shipments to the United States. The reason for the suspension is an executive order signed by Donald Trump that abolishes the USD 800 exemption limit for goods imported into the USA.

Apart from the economic impact, Swiss society has also been affected by local issues. Lausanne, the capital of Vaud, has been hit by violent youth riots this week. The riots followed criticism of the city's police force, with four officers suspended due to racist, sexist, and discriminatory messages exchanged in private WhatsApp groups.

In a different context, the outgoing EU Ambassador to Bern, Petros Mavromichalis, suggested that the only way to reduce immigration in Switzerland is to relocate Swiss companies to the United States. Mavromichalis compared the perceived overcrowding due to immigration in Switzerland to the tourism industry in Greece.

However, the impact of immigration on the Swiss economy is more complex. Parenthood actually boosts earnings for both sexes, especially for those in middle to senior management positions. Men with children earned 21.4 percent more than child-free men, but the difference was just 6.6 percent for women. Married women with children working in both private and public sectors earned 21 percent less than married men with children in 2022, while the gender pay gap stood at 1.3 percent for single people.

In conclusion, the Swiss economy and society are navigating through challenging times, with the impact of US tariffs and local issues shaping the landscape. The economic outlook for 2026 is uncertain, and the riots in Lausanne underscore the need for reform within the police force. The complexities of immigration and its impact on the economy, as well as the gender pay gap, remain ongoing issues to be addressed.

Six noteworthy headlines from Switzerland that you should stay informed about this week: