Confusion and anger in Switzerland

39 %? This is a great shock for Switzerland and worse than the worst scenario-the highest tariffs in Europe.

Globally, the fourth highest, only behind Syria, Laos and Myanmar (President Trump follows the threat of 50% tariff).

The only story that dominates news and air waves on Friday. A newspaper Blick described it as the country’s greatest defeat since the French victory in the Marignan War in 1515.

Only weeks ago, the Swiss government created confidence.

In May, a Swiss facilitated meeting between the United States and China in Geneva, which aims to prevent a trade war between the two economic superpowers, allowed Swiss President Karin Keller-Sutter to hold a meeting with US Trade Secretary Scott Bessence.

He came out with a smile. He was told that Switzerland would be second on the list to make a trade agreement with Washington after the United Kingdom. 10% implied that Donald Trump had an attractive tariff proposal, which was much lower than 31% introduced for Switzerland on ‘Independence Day’ in April.

Now, these illusions are shattered. Just a few hours before the first date of August, the last phone call between Mrs. Keller-Sutter and President Trump did not give anything. Hours later, the tariffs came to 31% as threatened at the beginning, but was punished by 39%.

From where? Some Swiss politicians already argue that Switzerland’s negotiation tactics are not ready to draw – but some say very hard, others say a lot. The truth can be simpler: Trump was eager to make great agreements, and Switzerland is not so big. Even many discussions that Swiss trade negotiators can have with US colleagues are not clear.

The Swiss government, now, says there is a trade deficit with the US.

Trump sees trade deficits – when a country sells more than the United States – as a problem for the US as a problem for the United States, but it is not widely shared by economists. He believes that tariffs can help protect the US production sector, which has lost their business to companies abroad for decades.

The Swiss trade deficit with the United States was $ 47.4 billion in 2024, but if the service industries were included, Trump’s easily ignored, falling to $ 22 billion. Switzerland sells more than it has purchased to the US (mainly on medicine, gold jewelry, watch and team stalls).

In order to compensate for this, the Swiss government reduced its own tariffs on US industrial goods to zero and promised multi -dollar investments to US facilities in multiple Swiss companies (Nestle, Novartis). Switzerland is already the world’s 6th largest investor in the world, Switzerland says, 400,000 USA business.

However, it seems impossible to balance the gap. The Swiss population is only 9 million, and many of them do not want to buy products for us. Gas mixed cars are very big for Alpine roads, US cheese and chocolate… Well, let’s say it’s not really the Swiss pleasure.

Economiesuisse Foreign Trade President Jan Atteslander, representing businesses, said to Swiss publishing: “We need reliable relationships with the US.”

This may be a disappointment signal that one of the most important export markets in Switzerland adopts a trench/closed trade policy by removing the Swiss business from the certainty that it needs.

So what can Switzerland do now? There is a small opportunity window until August 7, when tariffs will come into force. Until then, the Swiss government will try to negotiate fiery. Swiss businesses warn thousands of job losses if 39% cannot be reduced.

But it’s hard to see what the room is.

With investment promises and zero tariffs, Switzerland had already offered everything he could do. Now it will be the only tactical punishment – withdrawing the investment offer, introducing mutual tariffs and canceling the order for the US F35 hunter planes of Switzerland, Switzerland.

There is confusion and anger throughout Switzerland.

Friday, July 4, equivalent of Switzerland National Day. After making his traditional speech, Swiss President Karin Keller-Sutter was asked about the US tariffs.

He said that the negotiations with the US went well to journalists, but the trade deficit for Donald Trump was an obstacle. Inference was that the US president was a problem.

Instead of the usual patriotic celebrations, many Switzerland think that they have been punished for having one of the most competitive and innovative countries in the world.

Others say that the country has previously escaped economic shocks and can use this innovation to get rid of it.