Swiss stunned by US tariff hike, seek negotiated solution

Reuters ^ | August 1, 202510:31 AM CDT | John Revill and Olivia Le Poidevin

[E. Pluribus Unum]

Summary

• US announces 39% tariff on imports from Switzerland
• Swiss manufacturers say tens of thousands of jobs at risk
• Talks to continue ahead of August 7 introduction

RUETLI, Switzerland, Aug 1 (Reuters) - Swiss manufacturers warned on Friday that tens of thousands of jobs were at risk after U.S. President Donald Trump hit them with one of the highest tariff rates in his global trade reset, even if there was some relief for now for the key drugs sector.

The government said it was "disappointed" and would decide how to proceed after Trump set a 39% tariff on the export-reliant country - more than double the 15% rate for most European Union imports into the United States.

The levy - up from an originally proposed 31% tariff that Swiss officials had described as "incomprehensible" - is a body blow for the small Alpine nation, which counts the U.S. as the top export market for its watches, jewellery and chocolates.

The White House said on Friday it had made the move because of what it called Switzerland's refusal to make "meaningful concessions" by dropping trade barriers.

"Switzerland, being one of the wealthiest, highest income countries on earth, cannot expect the United States to tolerate a one-sided trade relationship," a White House official said.

Swiss President Karin Keller-Sutter earlier told Reuters the government would keep talking to Washington, but there were only limited concessions it could offer, as U.S. imports already enjoyed 99.3% free market access.

"We have companies that have made very important direct investments (in the U.S.). It's really difficult to give more," she said on the sidelines of a Swiss National Day event in Ruetli.

Switzerland's main export to the U.S. is pharmaceutical products - worth $35 billion last year - though officials said drugmakers should not be affected...

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TOPICS: Business/Economy; Foreign Affairs
KEYWORDS: johnrevill; olivialepoidevin; switzerland; tariffs

[traderrob6]

The Swiss one way street is OVER!

[dljordan]

OK, kick the UN, WEF and WHO out of your country.

[mikey_hates_everything]

The Swiss appear smarter than the Canadians in charge.

[catnipman]

“Swiss stunned by US tariff hike, seek negotiated solution

US announces 39% tariff on imports from Switzerland

Swiss manufacturers say tens of thousands of jobs at risk

Talks to continue ahead of August 7 introduction”

looks like President Trump got their attention!

guess the swiss will have to quit FAing or they’re soon gonna FO ...

[SaxxonWoods]

Same as everyone else, panic over the free ride ending, and then make a deal and move on because there is no other choice.

[sphinx]

Trump is interfering with Swiss chocolates? That is beyond the pale. Trump needs to pick his fights more carefully.

[TheDon]

“looks like President Trump got their attention!”

He’s quite effective at doing so.

Can’t think of a better President to reset our trade with the rest of the world post WWII and post Cold War. It’s been a very long time coming.

[Mr. Jeeves]

The media, as usual, only reports these stories from the perspective of “Trump’s poor victims” so we really don’t know what Switzerland has been doing to provoke this policy reaction.

[Wilderness Conservative]

Dont forget all those poor people who will be paying more for a Rolex. Oh the HUGE Manetee!

[In_Iowa_not_from]

Switzerland's main export to the U.S. is pharmaceutical products

Those miracle meds keeping boomers alive just got more expensive.

[faucetman]

FAFO

[Magic Fingers]

Those miracle meds keeping boomers alive just got more expensive.

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“...officials said drugmakers should not be affected...”

[SaxxonWoods]

Here’s another “Oh by the way” piece of info from yesterday that the press buried. Average income increased from its prior rate of 3.7% to 3.9%. Can’t have people noticing that. Wage increases are outrunning inflation level, meaning real wages are rising.

[MinorityRepublican]

Swiss President Karin Keller-Sutter earlier told Reuters the government would keep talking to Washington, but there were only limited concessions it could offer, as U.S. imports already enjoyed 99.3% free market access.

I assume that's a lie. They are probably protecting certain industries in Switzerland.

[Freee-dame]

What products do we want to sell to Switzerland? Does Switzerland do any research and development on pharmaceuticals or do they just manufacture what other countries develop?

[Paladin2]

Is Trump a Boomer?

[grumpygresh]

I thought Trump was forcing pharmaceutical companies to give US consumers most favored nation status? How would that raise prices? US consumers already pay 3x more than comparable developed nations. So any additional price increases isn’t going to happen.

[irishjuggler]

“Take my Toblerone from of my cold, dead hands...”

[zeestephen]

Once again, the Trump Administration completely fails to explain - in detail - that almost every country in the world has pre-existing tariffs on USA products exported into their countries, plus, specific USA product import barriers.

Also, Swiss President Karin Keller-Sutterand is the first negotiator I have read about who claims that Swiss manufacturers in the USA produce so much value, that the country of Switzerland should be 99.3% exempt from USA tariffs.

I want to see the 99.3% tariff exemption explained in detail.