Latest Swiss News Roundup on a Thursday: Updates Straight from Switzerland Today
Hitting the Swiss Economy Hard: US Tariffs Takes Its Toll
The long-term effects of the higher tariffs Donald Trump intends to impose on Switzerland, following the 90-day grace period in July, remain uncertain. However, the Federal Council, in a recent press release, warns of potential indirect consequences due to the slowdown in the global economy and the volatile financial markets.
In light of this, the Swiss economy is expected to show less growth than expected. While an economic collapse is off the table, some industries may struggle. Potential reductions in working hours for employees in export-oriented businesses might be necessary to offset the impact of these tariffs.
Revving Up with Speed: SBB's New High-Performance Trains
To maintain its competitiveness in the international market, SBB, Switzerland's national rail company, plans to introduce super-fast trains for international connections. Cities like Rome, Barcelona, and London, among others, will be linked with these high-performance trains. The SBB aims to purchase up to 40 of these trains, at an estimated cost of 1 billion francs. The contract will be put out to tender in 2026.
Delivering the Future: Post Office's New Strategy
In an announcement by the Federal Council, the postal service aims to deliver 90% of letters, parcels, and newspapers on time in the future. This shift will provide greater flexibility during peak times such as Christmas. Additionally, the Post Office will accept and deliver letters digitally. These amendments are currently under consultation, with a decision expected by August 6th.
Disruptions to Geneva Tram Operations
Roadworks will disrupt tram lines 15 and 17 from April 18th to June 1st. As a result, line 15 will end at the Lancy Pont-Rouge stop instead of Ziplo, and tram 17 will only run from Annemasse, France to Plainpalais. Passengers can avail shuttles between Lancy-Pont-Rouge and Les Palettes, extended line 18 services to Ziplo, and line 82 to connect from Ziplo to Lancy-Bachet station.
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Enrichment Insights:
Impact of US Tariffs on the Swiss Economy:
- Economic Weakening: The Swiss government expects these tariffs to lead to a sharp weakening of the Swiss economy, though not a complete collapse.
- Export Sector Challenges: Swiss companies, particularly those exporting directly to the US, face significant challenges, with smaller suppliers in the automotive industry being severely impacted due to declining European production.
- Administrative Burden: The tariffs increase administrative costs for Swiss exporters due to the complexity of calculating and processing tariffs, potentially slowing production processes.
- Global Economic Impact: The Swiss economy might further be impacted by the potential slowdown in the US and global economies over the next few quarters.
Government Preparation:
Switzerland has acknowledged the challenges posed by these tariffs, but specific measures to mitigate the impacts are not yet detailed in the reports. Switzerland has abolished all industrial tariffs as of January 1, 2024, allowing duty-free importation of most US goods. Ongoing diplomatic efforts, such as privileged talks with the US regarding tariffs, indicate continuous attempts to address these issues.
- The Federal Council's warning suggests that the potentially indirect consequences of the US tariffs, combined with the slowdown in the global economy and volatile financial markets, could lead to less growth in the Swiss economy than initially anticipated.
- In response to these challenges, some export-oriented businesses might need to show flexibility by reducing working hours for employees to offset the impact of the tariffs.
- Meanwhile, in the realm of politics and policy-and-legislation, the postal service aims to provide greater flexibility during peak times such as Christmas by aiming to deliver 90% of letters, parcels, and newspapers on time in the future.
- On a different note, the frequent disruptions to Geneva tram operations, due to roadworks, require passengers to adjust their travel plans, with line 15 ending at the Lancy Pont-Rouge stop instead of Ziplo, and tram 17 only running from Annemasse, France to Plainpalais from April 18th to June 1st.
