Withdrawals and Reinstatements - Switzerland's Response Amid Trump's Decisions
The trade relationship between Switzerland and the United States is currently strained, following the imposition of a 39% tariff on Swiss imports by the US. This tariff, the highest in Europe, is significantly higher than the initial 10% and the threatened 31%, and targets key Swiss exports such as luxury watches, chocolates, and cheese [1][4].
The main cause of this trade dispute is the growing US trade deficit with Switzerland, which reached $38.5 billion in 2024, a 56.9% increase from the previous year [3][4]. The Trump administration's policy aims to address trade imbalances and reshape international commerce, as reflected in Executive Order 14257 and subsequent modifications to reciprocal tariff rates.
Switzerland's response has been one of "great regret" and disappointment, particularly since the high tariff rate deviates substantially from a draft joint declaration of intent that had been negotiated over months. The Swiss government is determined to continue striving for a negotiated, mutually compatible solution that respects Swiss legal frameworks and existing obligations [2][5].
Swiss Federal Councillor Karin Keller-Sutter expressed her views on the matter in an interview with RTS on Wednesday. She stated that Switzerland, being a small country with limited economic and political power, will have to live with its limitations [6]. Despite initial hopes for better access to Trump, Keller-Sutter revealed that no agreement had been reached before the negotiation deadline [7].
In light of these developments, Switzerland is considering countermeasures such as ending the F-35 deal, increasing bureaucratic costs for American companies, and filing a complaint with the WTO [1]. The Swiss government is also maintaining contact and negotiating with US authorities to mitigate the economic damage caused by the tariffs.
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In summary, the trade tension between the US and Switzerland stems from the US's efforts to reduce its trade deficit via steep tariffs, while Switzerland seeks to negotiate a resolution to avoid further economic harm, emphasizing dialogue and legal compatibility in its response strategy.
In response to the increased tariffs imposed by the US, Switzerland is exploring countermeasures such as applying negotiation tactics, filing a complaint with the WTO, and potentially ending the F-35 deal to address the trade imbalance. The ongoing war-and-conflicts in politics and policy-and-legislation, like the efforts to reduce the US trade deficit, often make general-news headlines as they significantly impact international trade relationships.
