Customs taxes: Switzerland could avoid disaster
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Political, administrative, and economic circles are hopeful that Donald Trump will not carry out his threat to impose exorbitant customs duties on Switzerland.
In the spring, Donald Trump threatened to impose 31% customs duties on Switzerland (illustrative image).
The deadline for governments to agree on new US tariffs or face trade sanctions expires next Wednesday. However, according to the "NZZ am Sonntag," Swiss political, administrative, and business circles are almost unanimous in their belief that our country should be spared a customs catastrophe that would threaten cheese exporters and machine manufacturers.
"The Americans have understood that Switzerland is not the right country to make an example of," said Rahul Sahgal, director of the Swiss-American Chamber of Commerce. He said he is optimistic that an agreement will be reached before July 9. And Economy Minister Guy Parmelin told the newspaper Le Temps on Saturday that he was "quite confident" in this regard.
Helene Budliger Artieda, director of the State Secretariat for Economic Affairs (SECO), indicated that the flat rate of around 10% imposed by the Americans for the duration of the negotiations would be maintained. This is painful, but still far less than the 31% tariffs that Donald Trump threatened to impose on Switzerland in the spring, she believes.
This announcement by SECO could be interpreted as a clever management of expectations aimed at limiting disappointment regarding the price of an agreement, comments the Sunday newspaper. However, it seems more likely that Bern has indeed abandoned hope of being able to significantly reduce the 10% rate further.
Nevertheless, negotiations with Washington are entering a critical phase. Bern is now seeking sectoral exceptions, particularly for the pharmaceutical industry—the main export sector to the United States. According to the financial portal Bloomberg, Swiss pharmaceutical products—which have so far been largely exempt from customs duties—could continue to benefit from preferential treatment. This prospect is hailed as essential by economic stakeholders.
Even if a final agreement between Bern and Washington is not reached by next Wednesday, the temporary customs duty regime could be extended for countries considered to be negotiating "in good faith," notes the "NZZ" am Sonntag. This flexibility allows Federal Councilor Guy Parmelin to display measured optimism. It remains to be hoped that no unforeseen event will derail this fragile balance, concludes the German-language weekly.
Swiss companies are turning their backs on the United States and strengthening their ties with the European Union, according to the ZHAW "Swiss Managers Survey," conducted in collaboration with chambers of commerce and universities. The results, published in the "SonntagsZeitung," show that 40 percent of Swiss managers have a more positive image of the EU than they did two years ago.
Europe is thus becoming the preferred partner in the face of an America deemed unpredictable. And only 20% of Swiss companies are still considering relocating their production to the United States. Half of the executives surveyed consider the American environment too unstable. And a quarter of companies are even reducing their dependence on American software or are considering doing so in response to the tariffs imposed by the Trump administration.
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