US Edition
Switzerland Warns Its Companies that No, They Can't Dodge Trump's Tariffs by Routing Goods Through the Tiny Neighboring Country of Liechtenstein
Switzerland's political system limits its ability to respond to US tariffs despite a $40 billion trade deficit, with tariffs reaching 39 percent on Swiss imports, the highest in Europe.
- On August 1st, US President Donald Trump imposed 39% tariffs on Swiss imports, Europe’s highest reciprocal rates.
- According to the Financial Times, the US cited a $40-billion trade deficit and describes Switzerland’s ‘structural vulnerability’ hindering renegotiation.
- Faced with structural limits, the Swiss Federal Council cannot unilaterally offer $30 billion without risking backlash, due to direct democracy and neutrality traditions.
- Following the tariff hike, Swiss companies fear machinery, cheese, and chocolate sectors will be impacted, while US consumers may buy more UK Cadbury chocolate at 10% tariffs.
- Looking ahead, 9 million Swiss spend more per capita on US products than over 340 million Americans on Swiss imports, pressuring Swiss firms as the US seeks alternatives.
16 Articles
16 Articles
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Switzerland warns its companies that no, they can't dodge Trump's tariffs by routing goods through the tiny neighboring country of Liechtenstein
Switzerland and Liechtenstein have long shared an economic market, but President Donald Trump has imposed a steep tariff on Swiss goods compared to its Liechtensteiner neighbors. The Swiss government has clarified that Swiss businesses will be unable to reroute their products through the neighboring principality. The Trump administration recently implemented a 40% tariff on transshipments, or the movement of goods to an intermediate destination …
The majority of Swiss people voted against concessions to the US in a poll.
The Swiss have been anxious about their economy since the US imposed high tariffs on them. The SPD's spokesman for European politics is now making Bern advances, albeit with little prospect of success.
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