Donald Trump imposed on them the highest duties in Europe. Country in shock after the decision
39 % The duties on imports from Switzerland to the USA are on a global scale, the fourth largest duty imposed by Donald Trump, after Syria, Laos and Mjanmie (although if the US president realizes his threat of introducing 50 % rates, Brazil will jump to the top of the list).
Donald Trump's decision was dominated by Swiss media on Friday. One of the newspapers, “Blick”, even described it as the country's greatest defeat from the French victory at the Battle of Marignano in 1515.
In May, the US and China meeting in Geneva organized by Switzerland (aimed at preventing a trade war between two economic superpower) allowed the President of Switzerland Karin Keller-Sutter to meet the US Minister Scott Bessent.
The president left the meeting smiling. She was told, as she told that Switzerland would probably be the second on the list of Great Britain, which would conclude a trade agreement with Washington. She suggested that 10 percent This is a tempting tariff offer, much lower than 31 percent, which Donald Trump announced for Switzerland in April – writes BBC.
Switzerland shocked after Trump's decision. The illusions were in ruins
Now these illusions have been in ruins. Just a few hours before the date, which was on the first day of August, the last telephone conversation between Mrs. Keller-Sutter and President Trump did not bring any results. A few hours later, a message appeared that duties would not amount to 31 percent, as was originally announced, but as much as 39 percent.
Why? Some Swiss politicians are already arguing that Switzerland's negotiating tactics were not adequate – some say it was too hard, others that she succumbed to too. The reality can be more obvious: Trump cared about large contracts, and Switzerland is simply not that large – writes BBC.
Trade war of Donald Trump. Guilty commercial deficit
The Swiss government claims that the disputed issue is the commercial deficit with the United States, which amounted to $ 47.4 billion. In 2024, although if the service sector is taken into account, the deficit will decrease to $ 22 billion. Switzerland sells (mainly in pharmaceutical products, gold jewelry, watches and machine tools) to the USA more than it buys.
To compensate for this, the Swiss government reduced duties to American industrial goods to zero, and many Swiss companies (Nestlé, Novartis) promised multi -billion investments in American plants. Switzerland is already the sixth largest investor in the world in the US, creating, according to the Swiss, 400,000 jobs in the USA.
But the deficit balance seems impossible. The People of Switzerland has only 9 million and, to be honest, many of them do not want to buy US products. Cars are too big for Alpine roads, American cheese and chocolate … Well, let's say that they do not quite suit Swiss tastes – notes the BBC.
Switzerland will negotiate with the USA
So what can Switzerland do now? On August 7, customs are to come into force. Until then, the Swiss government will feverishly negotiate. Swiss companies warn against losing thousands of jobs if you can't lower 39 % objective.
However, it is difficult to see the field of maneuver. With investment promises and zero duties, Switzerland has already offered everything she could. The only tactics would now be the use of sanctions, i.e. the withdrawal of the investment offer, the introduction of mutual duties, and in the case of the nuclear option, canceling the order of Switzerland on American f35 fighters – says BBC.
Source: BBC
