Economy June 5, 2026 06:28 AM

Switzerland Rebuts U.S. Forced-Labour Allegations as Tariff Dialogue Moves Forward

Bern says its supply-chain focused controls work while Washington weighs higher duties under Section 301 probes

By Sofia Navarro
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Swiss authorities have formally rejected U.S. findings that they failed to address imports made with forced labour, while signalling they will continue negotiations with Washington. The government plans to restate its policy in writing and stresses a regulatory framework that combines rules, mandatory private-sector risk checks and international cooperation. The U.S. probe under Section 301, made public on June 2, is considering additional tariffs of 12.5% that would likely supersede a current 10% surcharge in place until July 24; a public comment period and hearing will precede any imposition.

Switzerland Rebuts U.S. Forced-Labour Allegations as Tariff Dialogue Moves Forward
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Key Points

  • Swiss government rejects U.S. findings on alleged failures to combat imports of goods made with forced labour and will restate its position in writing.
  • U.S. findings published on June 2 stem from Section 301 investigations opened in March into alleged unfair trade practices, including industrial overcapacity and enforcement on forced-labour goods.
  • Washington is considering 12.5% additional tariffs that would likely supplant a 10% surcharge currently in place until July 24; a comment period and public hearing will precede implementation - sectors most directly implicated include international trade and manufacturing exporters.

ZURICH, June 5 - The Swiss federal government said on Friday it will press ahead with trade discussions with the United States while rejecting allegations that it has not done enough to prevent imports produced with forced labour.

In a written response the government said it would reiterate its position to U.S. authorities, arguing that its current approach - which places emphasis on supply-chain scrutiny - is effective. Swiss officials highlighted a mix of regulation, compulsory private-sector risk assessments and cooperation with international partners as the core elements of their strategy.

Firm rebuttal

The Federal Council expressly "strongly rejects the allegations made in the course of this investigation," the statement said, outlining the government’s confidence in its existing mechanisms to address forced-labour concerns in imported goods.

Context of the U.S. action

The U.S. findings that prompted Switzerland’s response were published on June 2 and follow investigations launched in March under Section 301. Those investigations examine alleged unfair trade practices, with specific reference to industrial overcapacity and enforcement relating to goods made with forced labour.

Tariff process and timing

U.S. authorities are considering imposing additional tariffs of 12.5% on Swiss imports. Any such measures would not be applied immediately. Interested parties will first be asked to submit comments, and a public hearing will be held as part of the procedural steps before a final decision.

The Swiss government noted that any new additional tariffs are likely to replace a current 10% additional tariff that remains in force until July 24. It also said further tariffs could be imposed as a result of the related U.S. investigation into industrial overcapacity.


Outlook

Swiss officials have committed to continuing the dialogue with Washington while formally contesting the U.S. conclusions on enforcement against forced-labour goods. The process established by the U.S. - including the comment period and public hearing - means that outcomes and timing remain subject to further procedural steps.

Risks

  • Potential imposition of a 12.5% additional U.S. tariff on Swiss imports - this introduces trade policy uncertainty for exporters and trade-exposed sectors.
  • The U.S. investigation into industrial overcapacity could lead to further additional tariffs, prolonging uncertainty for manufacturers and cross-border supply chains.
  • Procedural steps - including soliciting comments and holding a public hearing - mean the timeline and final outcomes remain uncertain, affecting planning for firms engaged in transatlantic trade.

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