where Switzerland could hurt Trump

It’s done: Trump applied his customs duties to Switzerland. Furthermore, Does Confederation have the means to “retaliate” economically if it wishes? For example, A former trade negotiator responds.

The 39% customs duties decided by Donald Trump for Switzerland are acted. In addition, The Federal Council confirmed this Thursday at a press conference on Thursday that he did not envisage “countermeasures”. Therefore, that is to say to reply economically to the American president. For example, At least for the moment.

But did he really have the means? In addition, How can little Swiss hurt the American giant? Moreover, Dmitry Grozoubinski, a former trade negotiator, who practiced in Australia, answers us.

But if Switzerland gives a few good shots. Similarly, how much could where switzerland could hurt trump American society suffer? Consequently, ” Difficult to say, even if, the former negotiator underlines: “The American population does not like pain”.

The pharmis – Where switzerland could hurt trump

This is the most sensitive point on which Trump and Berne took the beak. Similarly, A first element is obvious: where switzerland could hurt trump the head offices of pharmaceutical companies are in Switzerland and will remain so. Nevertheless, “But they could decide to reduce or even cut their investments in the United States,” said Dmitry Grozoubinski. Consequently, Or exactly the opposite of what Donald Trump asks.

And what to the way to cut medication to the United States? Moreover, “It is a fairly radical idea, which would hurt many people. It would be a very bad idea. ”

Machine-tools

The other sensitive area is that of exports of Swiss precision machines, highly specialized. “We are talking about key points of the supply chain here, an important element of the capitalist economy.” In some areas. Swiss SMEs are the only ones to produce unique pieces on which whole and essential sections of an where switzerland could hurt trump economy depend. “China, for example, has a quasi-monopoly on certain magnets essential to all electronics.”

Switzerland is also at the forefront in terms of medical technologies. Could we think of acting on certain essential products of the Medtech? “It would be an idea, but here there are ethical implications.” Difficult for example, to imagine that Swiss companies would stop sending essential parts to advanced medical diagnoses. “Letting people with cancer die to put pressure on Trump is morally reprehensible and that’s not what will help Switzerland.”

And redirect the machines elsewhere, like where switzerland could hurt trump in China? “It takes a lot of means and time to rotate a market. We must build infrastructure, create or find partners and distributors, develop the brand awareness.

What about the idea of redirecting certain US markets in Canada? The country has also taken dear in terms of taxation (35%) and administratively, it is the same North American market. “It would be simpler, but even there, it would take two or three years,” replies Dmitry Grozoubinski. “Either the time Trump ends his mandate.”

The other solution is to return the situation to its advantage. Additionally, “Trump’s biggest competitor is China. If we manage to make him understand that to stay competitive in front of where switzerland could hurt trump Beijing. he needs certain Swiss precision products in the high-technology and machinery sector, he could understand that he needs us and drop tax on these products. “

Where switzerland could hurt trump

Investments and finance

This is an area with a considerable impact, not to underestimate. “Switzerland is a rich country with a lot of capital,” says Dmitry Grozoubinski.

Donald Trump wants to maximize foreign investments in the United States, that’s his goal. “If large banks. Swiss pension funds decreased the purchase of American shares or funds, or even stop doing it, it would be a constraint to achieve this where switzerland could hurt trump objective.”

Communication services

Under this somewhat catch-all term, we are talking about the services of GAFAMs. “A large number of countries have thought about it. ” excluding reprisals against Donald Trump, says our expert, who talks about the “DST”, that is to say “digital services tax” (taxes with digital services).

Almost all technology services, but also entertainment used in Switzerland are American. “Netflix, Apple, Amaza … Only Spotify is European,” he said, referring to the Music Giant, Swedish.

“It is a potential lever. Taxing tech on its own. while the European Union or South America does not do so, it is risky, “said the former negotiator.

F-35

It may be here that Switzerland could act as effectively as possible. “A military order is an important element of commerce. Defense orders are by far the most important commercial decisions that a government can make for the benefit of. another country. Nothing else is approaching, ”explains Dmitry Grozoubinski. “These are devices that we will use for 40 years with updates, new equipment …”

But to give up F-35-and we only know it too well in Switzerland-is above all a political decision, more than economic. “It is a rather daring decision, but not impossible,” said Dmitry Grozoubinski.

But he specifies that if Berne renounced the F-35, the United States could decide in retaliation to cancel other military contracts with Swiss armaments.