Swiss Government Summoned for Emergency Discussion on Trump's Taxation Policies
The Swiss government is urgently seeking a solution to avoid the implementation of high import tariffs on Swiss goods, scheduled to take effect on August 7, 2025. The tariffs, amounting to 39%, have been imposed by the US President, Donald Trump, and could potentially trigger a recession in Switzerland.
According to reports from ntv.de and mpa/rts, the Swiss stock market is expected to open with losses on Monday. The Swiss National Bank (SNB) may also lower the interest rate in September due to the expected economic downturn, as the tariffs increase deflationary pressure and make a rate cut more likely.
The tariffs are a response to the US trade deficit with Switzerland, which amounted to 38.5 billion francs (around 41.3 billion euros) last year. The US administration claims that the deficit is a result of unfair trading practices by Switzerland.
Swiss President Karin Keller-Sutter and Economic Minister Guy Parmelin have been actively engaging in diplomatic efforts to revise the Swiss offer to the US and show goodwill. Both officials are ready to travel to Washington for talks, with the aim of reducing or mitigating the tariffs and addressing US concerns.
Reports suggesting that the higher-than-expected tariffs were imposed due to a poorly conducted phone call between Keller-Sutter and Trump on late Thursday were denied by sources close to the Swiss government. The call, while unsuccessful in preventing the tariff increase, did not result in an argument, according to these sources.
Economist Hans Gersbach of ETH Zurich predicts a GDP drop of 0.3 to 0.6 percent due to the tariffs, with a higher decline if pharmaceuticals are affected. This could mean significant economic damage for a country that relies heavily on the export of these goods.
The Swiss government is pushing for swift renegotiations to find solutions before the tariffs take effect. The Swiss stock market was closed on Friday due to a holiday, but an emergency meeting is scheduled for Monday to discuss the next steps.
Sources: [1] ntv.de [2] mpa/rts [3] Swissinfo.ch [4] The Local Switzerland
- In an attempt to alleviate the impact of the anticipated economic downturn, the Swiss government is contemplating revising existing community policies, particularly the employment policy, to provide additional support to businesses and workers affected by the tariffs.
- Amidst the pressing issues of war-and-conflicts and policy-and-legislation worldwide, the escalating trade conflict between the US and Switzerland has gained significant attention in the general news, with the politics surrounding it potentially destabilizing the Swiss economy.
