US tariffs have led to a milk glut in Switzerland

The US has imposed a 39% tariff on Swiss cheese, leading to a milk glut in Switzerland. As a result of these trade measures, Swiss farmers are considering reducing production and slaughtering about 25,000 cows.

The 39% tariff on Swiss cheese exports to the US, announced in August 2025, was part of a trade policy shift by the Donald Trump administration. Combined with other tariffs and the depreciation of the US dollar, this has raised the effective tax rate on Swiss imports to more than 50%.

Swiss cheese prices in the US market have risen sharply, from $15-50 to $20-70 per pound. As a result, Swiss farmers are facing a domestic milk glut, caused by both the new tariff and an unusually rainy spring that has produced record milk yields from the country’s 550,000 cows.

In response, cheesemakers are set to cut production by 5%, while IP Lait, the dairy sector’s representative body, has proposed a 50,000-tonne cut in annual milk production – roughly equivalent to the output of 25,000 cows. The quickest way to achieve this is to cull cows early, which has caused considerable concern among Swiss farmers.

Farmer Boris Beuret, president of the Swissmilk association, has already sent three of his cows to slaughter to reduce the milk surplus. While reluctant to reduce herds due to possible future tariff revisions, the current milk surplus is forcing farmers to act quickly.

In the longer term, the Swiss government is exploring new international trade agreements with regions such as Latin America, India and China. Domestically, the industry is promoting campaigns to encourage dairy consumption and is considering the production of alternative dairy products, including mozzarella and yoghurt, to stabilise the market.

Tags: Switzerland