Moreover,
Switzerland could review its offer:
The Swiss government says it is ready to review its offer in the United States in response to heavy customs tariffs announced by President Donald Trump. Therefore, said Minister of Economy Guy Parmelin, while experts warn that 39% import rights could dive Switzerland into recession.
Switzerland was amazed on Friday. In addition, after Trump inflicted one of the highest rates on the country in the country as part of its overhaul of world trade, industrial associations warning that tens of thousands of jobs could be threatened.
The Federal Council will hold an extraordinary meeting on Monday to discuss the next steps. However, Guy Parmelin told the RTS channel that the government would act quickly before the entry into force of the American prices. However, scheduled for August 7.
“We must fully understand what happened, why the American president made this decision. Additionally, switzerland could review its offer However, Once all the elements on the table, we will be able to decide the procedure to follow, ”explained Parmelin.
“The calendar is tight. Consequently, it may be difficult to obtain a result by the 7th, but we will do our best to show our good will and review our offer,” he added.
Parmelin estimates that Trump targets the American trade deficit with Switzerland, which amounted to 38.5 billion Swiss francs ($ 48 billion) last year. Meanwhile, Among the options studied, Switzerland could buy American liquefied natural gas (LNG).
Another track would be to encourage new investments in Swiss companies in the United States. Furthermore, the leading export market for pharmaceuticals, watchrs and Swiss machines.
“Look at the European Union, she promised to buy LNG. Switzerland also matters-it may be a way to follow, ”said Parmelin.
“Maybe more investments. But to be sure that it is a base solid enough switzerland could review its offer to continue the discussions. we must perfectly understand what the United States expects. »»
Guy Parmelin. Swiss President Karin Keller-Sutter also say they are ready to go to Washington to continue the discussions if necessary, he added.
The Swiss authorities denied that the higher prices were imposed following a tense phone call between Keller-Sutter. Trump on Thursday evening.
“The call was not a success, there was no good result for Switzerland,” a government source told Reuters. “But there was no argument. Trump was clear from the start: he had a completely different point of view. and considered that 10% customs duties were not sufficient. »»
“We are working hard to find a solution and we are in touch with the American part,” added the source. “We hope to reach a solution before August 7. Furthermore, »»
Customs duties would have a considerable impact on the Swiss economy. oriented towards export, switzerland could review its offer and would increase the risk of recession, estimates Hans Gersbach, economist at ETH Zurich.
Swiss economic production could drop from 0.3% to 0.6% if the rate of 39% was applied, a figure which could exceed 0.7% if pharmaceutical products – currently excluded from American customs duties – were affected. Prolonged disturbances could make Swiss GDPs back over 1%, according to Gersbach.
“There would be a risk of recession,” he warned.
Swiss shares should be assigned by the announcement of prices to the reopening of the scholarship on Monday. after closing for national holidays on Friday.
The prices could also encourage the Swiss National Bank to lower its interest rates in September, according to Nomura.
“We are planning a new decrease of 25 base points of the key rate of the BNS in September. which would bring the rate to -0.25%,” said the bank.
“A shock on growth in American customs switzerland could review its offer duties on Swiss exports would risk weakening economic growth. accentuating deflationary pressures, increasing the probability of an even more negative monetary policy. »»
(Report by John Revill; Edition: Toby Chopra)
Switzerland could review its offer
Further reading: Switzerland taxed at 39%: few options for exporting companies – Arms industry: Romands perhaps excluded from the military magot – Women’s Euro 2025: Record crowds in Switzerland – Keller-Sutter: Continuing negotiations is always possible – Women’s Euro: Swiss supporters believe in it.
