Switzerland is reeling after the US announced a 39% tariff rate on the Alpine country, just days after celebrating its national day. The surprise move has triggered a blame game between Swiss officials and critics.
The failure was attributed to a phone call between Swiss President Karin Keller-Sutter and Donald Trump, which was described as “disastrous” by multiple people familiar with the situation. Trump’s team claimed that 10% tariff rate was not enough, despite Switzerland agreeing to this amount in July.
Critics pointed fingers at Switzerland’s pharmaceutical industry, which is accused of sparking the ire of the US president. The country’s vast pharmaceutical sector sends around 60% of its exports to the US, with companies like Novartis and Roche receiving letters from Trump demanding lower drug prices.
The Swiss government has pledged nearly $150 billion in US-bound investment, but this was not enough to secure a better deal. The US is Switzerland’s top export market for goods including watches, chocolate, and machinery.
Swiss officials are now bracing themselves for losses as the stock market awaits news of the tariff rate impact on Monday. However, some corporate voices argue that Switzerland needs to try harder to find alternative solutions and meet with Trump again.
The Swiss-American Chamber of Commerce insists that Switzerland’s investment pledges could still result in a better deal when all aspects are agreed upon. The chamber’s CEO, Rahul Sahgal, said the country’s pledge per capita is higher than what Japan or the EU have pledged, and that perspective should be considered.
Source: https://www.ft.com/content/6804c076-4961-4373-a4f8-1e59ab5d7f8b