30 January 2026 – Despite overnight corrections across commodity markets, nickel prices remain elevated and are still trading at their highest level in 16 months. Switzerland and the EU are clashing over new steel tariffs – has Brussels turned its back on one of its closest trading partners?
Nickel Prices Remain at a 16-Month High
Despite overnight corrections in commodity markets, nickel prices remain at elevated levels and continue to trade at their highest point in 16 months. Compared with December alone, nickel prices have risen by almost 7%.
We would explicitly like to congratulate everyone who made use of the past few days to place orders.
Recently, Taiwanese stainless steel producers raised their prices again in response to higher raw material costs. However, the particularly sharp increases announced by stainless steel producer YUSCO appear questionable to us-at least at the announced magnitude-and seem more like an opportunistic exploitation of the tight Class I nickel market than a justified cost pass-through.
Switzerland and the EU Clash Over New Steel Tariffs
Switzerland is traditionally one of the European Union’s closest trading partners, with both economies deeply intertwined. Annual goods trade between Switzerland and the EU amounts to approximately EUR 327 billion. However, unlike Norway, Liechtenstein, and Iceland-the members of the European Economic Area (EEA)-Switzerland relies solely on bilateral trade agreements with the EU.
EU Seeks to Activate Bilateral Safeguard Clauses with Free Trade Partners
Under the planned EU steel tariffs and quotas, Switzerland would receive no meaningful exemption. The European Commission has applied for the authority to activate and enforce bilateral safeguard clauses across all free trade agreements.
In the specific case of Switzerland, there is also no compensation mechanism should the EU apply the bilateral safeguard clause (Article 27), as expected. This further exacerbates the imbalance for the Swiss side.
Swiss Steel Industry Faces 50% Tariffs Without Quotas
As a result, the Swiss steel industry – much like many smaller steel-exporting countries – faces the full force of EU steel tariffs of up to 50%. Unlike under the previous global EU safeguard regime, there would be no “Other Countries” quota and no credible economic justification.
As EU Trade Commissioner Maroš Šefčovič recently stated, the EU is only willing to negotiate quotas with partners whose steel import market share exceeds 5%. Switzerland is nowhere near that threshold.
Has the Commission Turned Its Back on Switzerland?
This approach appears to have been poorly received in Switzerland. Only last year, the EU and Switzerland agreed on renewing and strengthening their bilateral trade framework (“Bilaterals III“). Against that backdrop, Swiss policymakers have expressed understandable irritation at what is perceived as Brussels turning its back on a close and reliable partner.
Thorsten Gerber, CEO of the Gerber Group, commented today: “Overall, this once again amounts to nothing more than commercially dishonourable behaviour by the Commission-carried out through the back door. But what else should one expect from socialists with increasingly authoritarian tendencies?”
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