Image source, Getty Images
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- Author, Imogen Foulkes
- Author's title, Body in Geneva, BBC News
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39 %? For Switzerland this is a tremendous blow, worse than the worst imaginable scenario: they are the highest tariffs in Europe.
At the global level, they are only located above Syria, Laos and Myanmar (although former president Donald Trump fulfills his threat of imposing tariffs of 50 %, Brazil would head the list).
This news monopolized the headlines and the attention of the Swiss media this Friday. The newspaper Blick He described it as “the greatest defeat in the country since the victory of France in the battle of Marignano in 1515”.
Just a few weeks ago, the Swiss government was very confident.
In May, Switzerland organized a meeting in Geneva between US leaders and China, with the aim of avoiding a commercial war between these two economic powers. This opened to the Swiss president, Karin Keller-Sutter, the possibility of meeting with the US Secretary of Commerce, Scott Besent.
He smiled. As he said, they told him that Switzerland would probably be the second country to negotiate a commercial agreement with Washington, after the United Kingdom. There was talk of a 10 % tentative tariff, well below the 31 % that Trump had announced for Switzerland on his “day of release” in April.
Now, those illusions have become trizas. Just a few hours before the deadline of August 1, a last phone call between Keller-Sutter and President Trump gave no result. Hours later came the news that tariffs would not be 31 % as initially threatened, but a 39 % punitive.
Because? Some Swiss politicians already argue that Switzerland's negotiation tactics were not up to it: some say they were too hard, others that excessively complacent.
Reality could be simpler: Trump was anxious to close great agreements, and Switzerland is simply not large enough. It is not even clear how many conversations managed to have Swiss commercial negotiators with their US counterparts.
Image source, Getty Images
The commercial deficit, the argument that Trump does not want to release
According to the Swiss government, the critical point is the commercial deficit with the US.
Trump considers that commercial deficits – when a country sells more to the US.
He believes that tariffs can help protect the American manufacturing sector, which for decades has lost jobs against foreign companies.
Switzerland's commercial deficit with the United States was US $ 47,400 million in 2024, although it is included the services – something that Trump conveniently ignored – the deficit is reduced to US $ 22,000 million.
Switzerland sells more to the US (mainly pharmaceutical products, gold jewelry, watches and machines) than you buy.
To try to compensate for this situation, the Swiss government reduced to zero its own tariffs on American industrial products, and several Swiss companies (Nestlé, Novartis) promised multimillion -dollar investments in factories in the United States.
Switzerland is already the sixth world investor in the United States and has created, according to Swiss, 400,000 jobs in that country.
But balance the deficit seems impossible. Switzerland has only 9 million inhabitants and many of them do not want to buy American products.
American gasoline cars are too large for American alpine roads, cheese and chocolate … well, let's say it is not really of Swiss taste.
Jan Atteteslander, head of Foreign Trade of Economiesuisse, which represents local companies, told Swiss radio: “We need reliable relationships with the United States.”
This could be a sign of frustration due to the fact that one of the most important export markets in Switzerland has adopted a “ON/OFF” commercial policy, stripping the Swiss companies of the certainty they need.
Image source, Getty Images
Confusion and anger
What can Switzerland do now? There is a small window of opportunity, until August 7, a date planned for the entry of tariffs.
Until then, the Swiss government will try to negotiate feverishly. Swiss companies warn of the loss of thousands of jobs if it is not possible to reduce 39%.
But it is difficult to see what the maneuver is.
With investment promises and zero tariffs, Switzerland had already offered everything he could. The only tactic would now be punitive: withdraw the investment supply, introduce reciprocal tariffs and, the nuclear option, cancel Switzerland of American combat aircraft F35.
In all Switzerland there is confusion and anger.
Friday is the Swiss National Day, the equivalent of July 4. After pronouncing her traditional speech, the Swiss president, Karin Keller-Sutter, was asked about US tariffs.
He told reporters that conversations with the United States had gone well, but for Donald Trump the trade deficit was the obstacle.
It was deduced that the problem was the US president.
Instead of the usual patriotic celebrations, many Swiss feel punished for having one of the most competitive and innovative countries in the world.
Others claim that the country has already survived previous economic crises and that it can use that innovation to survive it.
This article was written and edited by our journalists with the help of an artificial intelligence tool for translation, As part of a pilot program.
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