Switzerland rejects findings of U.S. forced labour investigation

Switzerland formally rejected U.S. findings from a forced-labour probe that recommends punitive tariffs on imports from 60 economies. The U.S. Trade Representative has proposed a 12.5% duty for Switzerland (vs. 10% for the EU), intended to replace separate 10% tariffs due to expire on July 24. Swiss officials and business groups called the USTR conclusions unfounded and said higher duties could be passed to consumers or avoided via alternative routing, so near-term economic damage is expected to be limited. Markets will watch forthcoming results from a related probe on excess capacity and ongoing bilateral negotiations, which together could influence trade flows and pressure the Swiss franc and exporters if tariffs are enacted.