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Switzerland is facing 39% US tariffs on its products, the fourth-highest amount of duties after Brazil, Syria, Myanmar and Laos.
US President Donald Trump at the Oval Office. (Reuters Image)
Switzerland says it is prepared to make a better offer for US President Donald Trump after being slapped with a whopping 39% tariffs that have shocked the country, causing ripples in the Swiss stock market.
The stock market tumbled by over 2% when it opened on Monday before paring its losses later in the day, ending the day down just 0.15%, after Trump announced one of the highest tariffs on the Alpine country among dozens of economies.
The new tariffs are expected to come into force from Thursday (June 7). Switzerland is facing the fourth-highest amount of tariffs after Brazil, Syria, Myanmar and Laos. Brazil is facing a 50% tariff on its products, Syria 41% and Myanmar and Laos have been slapped with 40% each.
Trump had originally threatened in April to slap a 31% tariff on Switzerland, which swiftly decided to negotiate with the United States. Swiss President Karin Keller-Sutter has said Trump believes that Switzerland “steals” from the US by enjoying a trade surplus of 40 billion Swiss francs ($50 billion).
Switzerland To Continue Talks
After an emergency meeting on Monday, the Swiss Federal Council said it would “continue negotiations with the aim of reaching a trade deal”, even beyond the Thursday deadline.
“Switzerland enters this new phase ready to present a more attractive offer, taking US concerns into account and seeking to ease the current tariff situation,” the council said in a statement, adding that it was at a distinct disadvantage as compared to other trading partners with similar economic profiles.
Hans Gersbach, deputy head of the KOF Swiss Economic Institute, said the tariffs could cut the country’s annual growth by between 0.3 and 0.6%. It could further rise if Trump targets the pharmaceutical industry, which has so far been exempt from tariffs.
Analysts at Swiss investment managers Vontobel said in a note that they believed “there is some hope for an agreement on US tariffs for Switzerland” that would bring them down to the 15% set for other countries.
The chocolate industry association, Chocosuisse, said the tariffs were a “tough blow” for the sector, which is already reeling from a 10% duty. “It is particularly shocking that Switzerland finds itself at a distinct disadvantage compared to all other Western industrialised countries,” it said in a statement.
Trump’s Tariffs
Trump has imposed tariffs on several economies, including 25% levies on Indian goods, that have injected a fresh dose of uncertainty for consumers and businesses worldwide. The legality of these tariffs are also under question as a US appeals court last week heard that Trump had exceeded his authority by declaring an “emergency” to charge the tariffs.
Critics have argued that Trump’s aggressive trade policy could gradually erode America’s power and prosperity and may lead to recession, a concern that initially led to Trump imposing a 90-day negotiating period with countries.
US Trade Representative Jamieson Greer warned on Sunday that “the coming days” were not likely to see changes in any duties as the “tariff rates are pretty much set”.
(with AFP inputs)
Aveek Banerjee is a Senior Sub Editor at News18. Based in Noida with a Master’s in Global Studies, Aveek has more than three years of experience in digital media and news curation, specialising in international…Read More
Aveek Banerjee is a Senior Sub Editor at News18. Based in Noida with a Master’s in Global Studies, Aveek has more than three years of experience in digital media and news curation, specialising in international… Read More
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