Swiss stunned by US tariff hike, seeks solution
Swiss manufacturers warned that the US President Donald Trump is at risk after hitting with one of the highest tariff rates in global trade reset, even if there is some relief for the key drug industry.
The government said it would “disappoint” and decide how Trump will decide how to continue after setting a 39 percent tariff to the export -related country – more than 15 percent of 15 percent of European Union imports.
The tax, which consists of a 31 percent tariff, which Swiss officials described as “incomprehensible”, is a body coup for the small Alp Nation, which considers the US as the best export market for watches, jewels and chocolates.
The White House said on Friday that Switzerland was acting due to rejecting trade barriers and refused to make “meaningful concessions”.
“Switzerland cannot expect one of the richest, the highest income countries in the world to tolerate a unilateral trade relationship.” He said.
The Swiss President Karin Keller-Sutter told Reuters that the government would continue to talk to Washington, but the US imports had limited concessions that he could offer because he had already enjoyed 99.3 percent free market access.
“We have very important direct investments (in the US). It is really hard to give more.” He said.
Switzerland’s main exports to the United States are the pharmaceutical products worth $ 35 billion (A54 billion) last year, but officials said that Big Pharma should not be affected by higher rates for now.
Swissmem, a group representing mechanical and electrical engineering industries, said the US movement was “really stunned”.
“The export industry and a great shock for the whole country,” Deputy Director Jean-Philippe Kohl said.
“Tariffs are not based on any rational basis and completely enjoyed … This tariff, especially in the European Union, England and Japan, our competitors have much lower tariffs will hit the Swiss industry very hard.”
According to the federation of the Swiss clock industry, the US is the best foreign clock market in Switzerland, which has 16.8 percent of exports or approximately 4.4 billion francs ($ A8.4 billion).
Shahzaib Khan, who runs two businesses that sell Swiss luxury hours abroad, said that tariffs are “difficult to digest”.
Khan Reuters, “This is out of control … I do not think that 39 percent of brands can absorb.” He said.
The new ratio will come into force on August 7, and a Swiss source that knows the issue will continue.
