Economy

Following a Supreme Court ruling against Donald Trump’s tariffs, which prompted a retaliatory global tariff imposition of 10%, subsequently raised to 15%, Swiss companies are grappling with uncertainty. While some are seeking tariff reimbursements, others are awaiting further clarification.

“If tariff rates change every three months, it complicates matters for us,” Nestlé CEO Philipp Navratil stated Monday to the AWP news agency. Frequent modifications hinder stable supply chain planning. Navratil refrained from commenting on the necessity of scheduled negotiations for a tariff agreement or whether to suspend them, expressing “full” confidence in the Swiss Federal Council and the State Secretariat for Economic Affairs (SECO) to reach a satisfactory agreement. He did not confirm whether Nestlé would join a legal action initiated by other companies to seek reimbursement.

Swatch is pursuing such a course of action. Its American subsidiary will request a retroactive refund of the surcharges paid. A spokesperson for the Biel-based watch group explained that information regarding the fresh tariffs is “currently contradictory and incomplete, making it difficult to take a position.”

The Federation of the Swiss Watch Industry (FH) indicated it is awaiting greater clarity. Its president, Yves Bugmann, highlighted that “the situation is very different from one company to another depending on their import method.” Swissmem added that the U.S. Supreme Court did not rule on the issue of tariff refunds, which will now be decided by lower courts.

Technically, the surcharges were paid by the importer in the United States, meaning the responsibility for seeking a refund lies with them. “In reality, Swiss industrial companies have, in most cases, absorbed part of the customs costs by adjusting their prices. They will need to reach an agreement with their clients,” Swissmem stated.

Samuel Vuadens, president of Swiss Industry and director of Nexfab, a microtechnology company, expressed an “state of uncertainty.” Speaking on Forum Samuel Vuadens, he used the analogy of a mountain climbing team caught in a severe storm. “Clients are not placing orders with Swiss industrialists because they might be better off tomorrow. Today, this uncertainty persists, and we continue to face a strong headwind,” he said.

In January, Nestlé CEO Philipp Navratil reportedly attributed the company’s reduced public discussion of sustainability initiatives to the policies of the Trump administration. According to the Financial Times, Navratil told employees that investor interest in sustainability had waned in the U.S., and he partially blamed Trump’s withdrawal from the Paris Agreement and his broader stance against climate action. Nestlé, however, maintains its commitment to net zero emissions targets, Navratil stated.

Ken Pucker, an influencer, noted on LinkedIn that Navratil’s comments were met with praise from sustainability experts, but also pointed to ongoing sustainability challenges for Nestlé, including legal complaints regarding child labor in its coffee supply chain, accusations of deforestation linked to cocoa sourcing, and its status as a major user of plastic packaging.