American customs duties of 39% on Swiss imports directly concern 100,000 jobs in Switzerland, mainly in watchmaking, the machine and metals industry as well as food, warned the Economiesuisseu.
For the Federation of Swiss Businesses, “the consequences could be even heavier, as suppliers and service providers also suffer indirectly”.
Washington announced on August 1 that Swiss exports to the United States will be subject to customs duties of 39% from August 7, invoking the trade deficit between the two countries.
Exempt pharmaceutical products
Pharmaceutical products, the engine of Swiss exports, are currently exempt, but the American president Donald Trump has promised them to them up to 250% if the pharmaceutical groups do not reduce their prices.
“If customs duties were to be taken from medicines, many positions would also be affected in the pharmaceutical industry,” warned Economiesuisse.
>> Read also: Tax drugs, a high risk coup for the United States
In detail, electronics and watchmaking see nearly 20,000 jobs affected by customs duties, followed by the food and tobacco sector (nearly 14,200 stations) and the pharmacy (around 13,900 jobs).
>> Read also: Trump threat to exports: the most in danger of the Swiss sectors
Suppliers also in turmoil
“In reality, exporting companies probably have more employees, on average, which is why the actual number of people concerned should be higher,” warned the scheme.
According to the Federation, “the negative consequences of the competitive disadvantage represents by American customs duties will not be limited to companies that export to the United States”, but “will also affect suppliers of the Swiss export industry”.
While the Federal Council said it was determined to continue dialogue with the United States, Economiesuisse called on political leaders to “quickly and effectively lighten the administrative and regulatory charges of companies” and to “compensate for competitive disadvantage in the American market by improving framework conditions in Switzerland”.
ats/edel
