Trump’s 39% Tariff Shocks Switzerland – Government May Offer New Deal
Switzerland is facing a serious trade challenge after former US President Donald Trump announced a 39% tariff on Swiss exports to the United States. The decision came suddenly and has left Swiss leaders surprised and concerned. This is one of the highest import taxes applied to any country and is set to take effect on August 7.
The tariffs could impact many important Swiss exports like watches, chocolate, machinery, and even pharmaceuticals. These are key sectors that bring billions into the Swiss economy. Experts are warning that such a sharp tariff could reduce Swiss GDP by 0.3% to 1%, and possibly push the country into a mild recession.
Swiss Government Responds Quickly
Swiss Business Minister Guy Parmelin said that the government is ready to respond. A special cabinet meeting will be held to look at all possible options. One of those could be making a new trade offer to the US before the tariffs begin.
Some ideas being discussed include buying US liquefied natural gas (LNG) or increasing Swiss investments in American businesses. These steps might help ease tensions and protect Swiss exports from the high tariffs.
Top Leaders Ready for Face-to-Face Talks
Swiss President Karin Keller-Sutter and Minister Parmelin are even prepared to travel to Washington for direct talks with US officials. Reports suggest that previous calls between Swiss and US leaders didn’t go well, but Switzerland is still pushing for a solution.
Swiss media and political leaders are also reacting strongly. Many believe the US has gone back on its promises after earlier trade talks, and the public is asking for a clear response from their government.
What’s at Stake?
Switzerland’s world-famous watch industry, advanced machinery exports, and strong pharma sector are all at risk. These industries depend heavily on US customers, and a 39% tariff would make Swiss products much more expensive in the US market. This could lower demand and hurt business.
The situation is especially sensitive because the tariffs might be extended to medical goods, which form a large part of Swiss exports. That could worsen the economic impact even further.
Impact:
Switzerland might revise its trade offer soon to avoid or reduce the new US tariff. If talks go well, both sides could reach a deal. But if the US holds firm, Swiss exports might suffer, and economic stress could grow in the coming months.