Switzerland pushes US trade talks amid 39% tariff hit

Following the US decision to impose a steep 39 per cent tariff on Swiss imports starting August 7, the Swiss Federal Council has sent President Karin Keller-Sutter and other top officials to the US to continue negotiations. The Council expressed its determination to seek a fair agreement beyond the current joint proposal and deadline, engaging both US officials and impacted Swiss industries to reach a resolution.

The new tariff would affect nearly 60 per cent of Swiss exports to the US, significantly disadvantaging Switzerland against peers such as the EU (15 per cent), UK (10 per cent), and Japan (15 per cent). In response, the Council will present a more attractive offer that considers US concerns, aiming to de-escalate trade tensions and avoid economic fallout, the Swiss Federal Council said in a statement.

Highlighting the strong bilateral ties, the Council noted that Switzerland is the sixth-largest foreign investor in the US and the top contributor to its research and development sector. Over the past two decades, trade between the two nations has quadrupled.

Switzerland also defended its trade practices, stating that its surplus is not due to unfair measures. As of January 1, 2024, the country has unilaterally eliminated tariffs on industrial goods, allowing over 99 per cent of US imports to enter duty-free. Furthermore, it refrains from using industrial subsidies that distort global competition.

While no countermeasures are currently planned, the government will activate its short-time working compensation scheme to support jobs potentially impacted by the new tariff regime. The Federal Council is also intensifying efforts to diversify trade partnerships globally as a strategic response.

The situation remains fluid, with Switzerland calling for fair treatment and reiterating its commitment to constructive dialogue.

ALCHEMPro News Desk (HU)