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...

[woodbutcher1963]

Not to worry, Lindt makes all their USA sold chocolates/candy at their facility in Stratham, NH

Kind of like Sig Sauer makes most of their US sold weapons in Portsmouth, NH.

Live Free or Die

[ETCM]

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

I used to order cigars from a shop in Switzerland. They added a few Toblerone bars in every shipment, and the customs form indicated "chocolate". Good stuff! Laderach is pretty good stuff too.

[eyedigress]

FAFO

[armourenthusiast]

Why are our medicines made on top of the mountains in Switzerland? What if it snows?

[ridesthemiles]

WERE THEY IGNORING THE NEWS FOR THE PAST 2 MONTHS???

[Verginius Rufus]

We have other sources of chocolate, but where else can we get Swiss Army knives or Swiss watches?

[In_Iowa_not_from]

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.

Many medicines are made overseas. Those that aren't made overseas contain ingredients from overseas. The equipment used to research and manufacture the medication here in America(pressurized vessels, microscopes, concentrators, beakers, test tubes, sterile gloves, et cetera) are made overseas. That equipment hasn't been made in America for decades, some of it hasn't been made in America since the 1960s.

The cheap generic meds are made in India from ingredients made in China. These blanket tarrifs that Trump loves is going to cost Americans dearly (especially retirees who are kept alive with these meds) whether they take brand name or generic meds, and whether or not they are made in America or overseas.

The main reason prices haven't gone up YET is because companies are still going through their pre-tariff stock. Once the next shipment comes in post-tariff, the prices will go up.

[grumpygresh]

Like autos, pharmaceutical companies need to be onshored . Enough of these Chinese Indian and imports from adversary less than friendly nations. Covid demonstrated that this was a serious weak point.
So it becomes a national security issue. That alone is justification for re-sourcing and onshoring as much as possible.
Of course onshoring will take time and there will be some price hikes. But in the end they’ll be more jobs for US workers, more GDP growth etc.

[lastchance]

Isn’t 4 tier chess great!?

[In_Iowa_not_from]

True. But then why is he removing the De Minimis exemptions for shipments from our allies (i.e. UK, Japan, S Korea, Isreal, etc)? Currently, e-commerce items from these countries enter duty free. Now he will start taxing them. And not just a flat rate. That will include processing fees.

Whether its a cell phone battery from Korea or collectible stamps from the UK, it will be slapped with more taxation. If Biden or Harris pulled this, there would be immediate push back. But slap a MAGA sticker on it and all is good.