Swiss Cheese Faces a Pricey Brink: Gruyère in US Tariff Turmoil

A 39% tariff on Swiss cheese imports to the U.S. is sparking concern among producers. Swiss officials are negotiating in Washington after President Trump's surprise announcement. Swiss cheese exports, vital to industries like Gruyere, face setbacks, with potential revenue losses reaching 15 million francs.

Swiss cheese producers are forecasting a significant decline in their U.S. market share following President Donald Trump's pronouncement of a 39% tariff on Swiss imports. The tariff, set to take effect on Thursday, has sent leaders, including Swiss President Karin Keller-Sutter and Business Minister Guy Parmelin, rushing to Washington for negotiations.

The announcement blindsided Switzerland, given its expectations of securing a deal with lower tariffs after pledges of American investment. For Swiss cheese, notably Gruyere, the U.S. represents an indispensable market, purchasing 11% of its exports last year. The implications are stark, with Gruyere seeing 40% of its production exported, of which a third is U.S.-bound.

In response, Gruyere producers have scaled back production by 3% and are upping their marketing efforts, anticipating price hikes for American consumers. The Interprofession du Gruyere, a producers' group, fears export drops of 1,000 tons, translating to a potential revenue loss of 15 million francs. With no quick market substitute for the U.S., these tariffs pose a hard challenge.

(With inputs from agencies.)