Trade war –
Switzerland suspended from Trump’s decision on customs duties
The American president must announce by August 1ᵉʳ if he maintains or not a customs surcharge of 31% on Swiss products exported to the United States.
Karin Keller-Sutter had called for a “decision based on dialogue and compliance with international trade rules”.
KEYSTONE
Switzerland retains its breath on the eve of an expected crucial decision of Washington on customs duties. President Donald Trump must announce by August 1ᵉʳ if he maintains or not a customs surcharge of 31% on Swiss products exported to the United States. The uncertainty is total and the suspense intensifies when approaching the deadline.
This measure, initially announced in April as part of the so-called “Liberation Day” commercial plan, aimed to impose a differentiated rate on the countries displaying a strong trade surplus with the United States. Switzerland, despite its small economic size, is among the most exposed partners, with a rate envisaged of 31%, the highest in OECD countries.
Since April, a 10% rate has been temporarily applied, pending a presidential arbitration scheduled for August 1ᵉʳ. The 90 -day delay granted to several countries, including Switzerland, expires this Washington time this Thursday evening, 6:00 am on the Swiss time on Thursday.
L’Hindu in Monte de Berne
In Bern, worry rises. The Federal Council has multiplied diplomatic contacts in recent weeks, but no firm response has yet been obtained on the American side. “We are still waiting,” said Keystone-Ats Markus Spörndli, spokesperson for the Federal Economy Department (DEFR) on Thursday.
Economic circles fear a brutal announcement. According to an estimate of the KOF Institute (ETH Zurich), the implementation of the 31 % rate would represent an annual loss of 0.2 % of Swiss GDP. Watchmaking industry, pharmacy, precision mechanics and The food industry is on the front line.
At the time of the announcement of customs duties of 31% on Swiss exports to the United States last April, the president of the Confederation Karin Keller-Sutter had called for a “Decision based on dialogue and compliance with international trade rules”adding that “Switzerland would not understand a sanction of this magnitude without consultation”.
According to observers in Washington, President Trump could announce an intermediate formula, with a rate between 15 and 20 %. Main trading partner of the Swiss economy, the European Union will be imposed on a rate of 15%.
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