Switzerland expected to pay the highest US tariffs among OECD countries…
Washington - The USA has imposed additional tariffs of 10 percent on imports. Countries with a surplus in goods trade will pay more. The tariffs for Switzerland are the highest out of the countries of the Organisation for Economic Co-operation and Development (OECD), at 31 percent.
US President Donald Trump imposed additional tariffs amounting to 10 percent on the majority of imports from outside of North America on April 2. A range of products are not affected yet, including pharmaceuticals, which are of vital importance for Switzerland. However, the administration has threatened to impose tariffs on pharmaceuticals as well.
The tariffs are higher for imports from countries with a surplus from trade with the USA. According to an announcement from the Office of the United States Trade Representative, the aim is to reach a trade balance.
Tariffs on imports from Switzerland are to increase by 31 percent. This is above the level of all other members of the OECD, the group of industrial countries. Korea follows with 25 percent, Japan with 24 percent, and the European Union with 20 percent. However, the tariffs are being raised to 37 percent for imports from Liechtenstein.
The USA is Switzerland’s single most important trade partner, even above Germany, and the number two after the EU as a whole. According to external trade statistics, in 2023, it exported goods to the USA for 56.66 billion Swiss francs and imported goods from there for 29.73 billion Swiss francs, amounting to a Swiss surplus of 26.93 billion Swiss francs. However, according to statistics from the State Secretariat for Economic Affairs (SECO), the USA achieved a surplus in trade of services: The USA exported services valued at 46.4 billion Swiss francs and imported services amounting to 26.4 billion Swiss francs in 2023, corresponding to an American surplus of 20.0 billion Swiss francs. This is not included in the American calculation of the new tariffs.
The US Trade Representative Jamieson Greer invited all countries to comment on the announced measures in advance. SECO explained in a letter to Greer’s Deputy Assistant, Catherine Gibson, that Switzerland was one of the world’s most open economies, had cancelled all industrial tariffs, and did not impose any digital tax. It commented that Switzerland was the sixth largest investor in the USA.
The Swiss-American Chamber of Commerce highlighted in its own submission that companies in Switzerland employed 500,000 workers in the USA. It stated that maintaining and broadening the strong partnership was in the best interests of both countries.
Economiesuisse called the new tariffs “damaging and unwarranted”. In an announcement, the umbrella organization for the economy called for the Federal Council, the Swiss government, and trade diplomacy to quickly find solutions at the negotiating table with the US government.
Scienceindustries described “considerable uncertainty” despite the exemption for pharmaceutical products. Stephan Mumenthaler, director of the association for the pharmaceutical and chemical industries, commented in an announcement: “Significant tariff increases on life sciences and chemical products put the internationally intertwined value and supply chains under pressure.”
Swissmem is disappointed about the decision. The umbrella organization for machine manufacturers demanded in an announcement that the Federal Council “act swiftly in order to at least lessen the tariffs and facilitate access to other markets”.
Source: swisstrade
https://swisstrade.com/news