Swiss Senate Extends Support for Companies Hit by US Tariffs

In a decisive move to shield the national economy from aggressive American protectionism, the Swiss Council of States has voted to extend short-time working compensation from 18 to 24 months. This critical measure comes as Swiss businesses grapple with a punishing 39% tariff on exports to the United States—a burden that threatens to stifle growth and trigger layoffs. The Senate's approval marks the first major legislative hurdle cleared in a race to protect domestic industries from external geopolitical shocks.

The extension, which is set to remain in force until the end of 2028, is not merely a bureaucratic adjustment; it is a survival mechanism. Businesses have been clamoring for this relief since the tariffs spiked in August, and the Federal Council has thrown its full weight behind the proposal. By expanding the safety net, the government acknowledges that the trade dispute with Washington is no longer a temporary skirmish but a protracted economic siege requiring robust, long-term defenses.

The primary target of this legislative rescue mission is Switzerland's renowned tech industry and its vast network of suppliers. These companies are currently facing a 'double whammy' of economic misfortune: they have been battling structural weaknesses for two years, and now they confront a staggering 39% duty on their goods entering the US market. This is not a potential risk—it is an active crisis.

For an industry that relies on precision, thin margins, and global export channels, the indefinite nature of these tariffs is devastating. The Senate explicitly cited this toxic combination—existing fragility compounded by the new US trade barriers—as the driving force behind the extension. Without the ability to place workers on short-time compensation for up to two years, many of these high-tech firms would face the grim choice of mass redundancies or insolvency. The measure provides a critical breathing room for companies to pivot strategies without shedding their highly skilled workforce.

While Bern legislates for survival, the root of the chaos lies in Washington, where the US Supreme Court is preparing for a showdown that could redefine global trade. In November, the Court will hear arguments on the legality of President Trump's use of the Emergency Powers Act to impose these sweeping tariffs. The stakes could not be higher. The US administration has hyperbolically claimed that denying this authorization would push the US to the 'brink of economic disaster.'

Trump's aggressive trade policy has already suffered defeats in lower appeals courts, which ruled that tariffs are the domain of Congress, not the President. However, the administration has successfully delayed the enforcement of these rulings, keeping the 39% levy on Swiss goods firmly in place. This legal limbo creates a volatile environment for Swiss exporters, who are forced to pay exorbitant duties while waiting for a judicial ruling that may—or may not—dismantle the entire tariff framework.