Fellow Italian driver, Nino Farina rounded out the podium in the second Alfa Romeo car.
The Swiss Grand Prix, the first event of the 1951 World Championship due to the absence of Monaco from the calendar, saw the Alfa Romeo team continue their dominance of the previous season.
However, Farina's decision not to make a pitstop did not pay off, as Fangio was able to retake the lead on lap 29.
Fangio maintained the lead for the remainder of the race, eventually winning by nearly a minute from Taruffi, who had overtaken Farina on the penultimate lap.
The remaining Alfa drivers—Consalvo Sanesi and Toulo de Graffenried—completed the points paying positions, ahead of Ferrari's Alberto Ascari, who competed despite suffering from burns from the previous weekend's Formula 2 race in Genoa.