Doha: Switzerland's economy shrank in the third quarter of 2025, as exports were hit by steep tariffs imposed by US President Donald Trump on Swiss products.

According to Qatar News Agency, data released Monday by the Federal Statistical Office and the State Secretariat for Economic Affairs showed a 0.5 percent contraction in gross domestic product from the previous quarter, following 0.1 percent growth in the second quarter. It was Switzerland's first economic decline since 2023.

The Secretariat said a sharp downturn in the chemical and pharmaceutical industries dragged down the broader industrial sector. Meanwhile, the services sector posted below-average growth during the same period.

In August, the United States imposed tariffs of 39 percent on Swiss exports, the highest rate levied on any European country. Expectations have improved somewhat since the announcement of a framework agreement to reduce the tariffs to 15 percent, but the reduction has yet to take effect and no implementation date has been set.