President Donald Trump's tariffs are causing economic stress for countries around the world, but Switzerland has become an unlikely target of some of the White House's import taxes. The wealthy Alpine nation has been hit with one of the Trump administration's highest tariff percentages. And this has led to people across Switzerland, a country that typically stays out of global conflicts, wondering why the nation is in Trump's crosshairs and what it means for the Swiss economy.
Some of the world's highest tariffs The Trump administration has imposed a 39% tariff on Swiss exports, the sixth-highest among any country. The high tax came as a "surprise" to the European country given that a "trade agreement had seemingly been imminent," said CNBC. But Trump has singled out nations like Switzerland he says "treat Americans 'unfairly' by exporting more goods to the United States than they buy from it."
Switzerland does have a high trade deficit with the U.S. — about $48 billion, according to the U.S. Census Bureau. But rather than this being a case of Switzerland treating the U.S. "unfairly," the "reality may be more straightforward: Trump was keen to make big deals, and Switzerland just isn't that big," said BBC News.
Fear of being 'annihilated' The tariffs have caused concerns among the Swiss people, especially among business owners who dominate Switzerland's industries. The "worst-case scenario has become a reality," Swissmem, a group representing the Swiss engineering and tech industries, said to The New York Times in a statement. If this "exorbitant customs burden is maintained," Switzerland's "export business to the USA will be effectively annihilated."
Among the Swiss, the "surprise wasn't that the U.S. took action" but rather the amount of the tariff, said the Financial Times. Some are even blaming Switzerland for the situation. Switzerland has a "reputation for delivering on its commitments. But that can be a weakness in a world that rewards drama and ambition," Hans-Peter Portmann, a Swiss banking executive and member of the country's parliament, said to the Financial Times. "That's a problem when you are up against Trump." |