Swiss President Keller-Sutter is heading to the U.S. for negotiations following the increase of tariffs by President Trump. This move raises concerns in Switzerland about potential negative impacts on its economy.
Switzerland against U.S. Tariffs
Swiss President Keller-Sutter is traveling to the U.S. after Trump raised tariffs on Swiss goods to 39%. Trump accused Switzerland of failing to offer anything to balance the $40 billion trade deficit. Keller-Sutter called Trump's accusations 'absurd' and stated that imposing such a tariff is unfair.
Economic Consequences
According to estimates, the new tariffs are expected to affect nearly 60% of Swiss exports to the U.S., creating challenges for products like watches, chocolate, and machinery. Economist Hans Gerbach from ETH estimates that the tariffs could reduce Switzerland's GDP by 0.3% to 0.6%, with potentially over a 0.7% reduction if the untouched pharmaceutical sector is included.
Negotiations and Future Relations
The Swiss government claims it is ready to consider U.S. concerns during the upcoming negotiations. However, no official response has yet come from the U.S. government. Switzerland is seeking the possibility of lowering tariffs to 10% to 15%, but faces Trump's decision to strengthen his stance on trade balances.
The relationship between Switzerland and the U.S. remains at risk due to the increased tariffs. Switzerland aims for negotiations to mitigate the impact of new economic conditions.
