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Switzerland’s trusted sin

The 31% of customs taxes applied to Switzerland during the “Liberation Day” in early April had already created the surprise. Quickly, federal authorities and economic environments were however reassuring: Washington opened a door to negotiations in which Bern intended to rush. With arguments constantly put forward: Switzerland is the sixth foreign investor in the United States, American products are not taxed when it entered the country, taking into account the services The trade balance is not so in deficit … Karin Keller-Sutter had even been able to speak directly with Donald Trump the week following the announcement of customs barriers.

Our continuous monitoring: Live, Trade war-worried entrepreneurs, political divisions: reactions fuse after the announcement of customs taxes of 39% in the United States

Despite the approach of the deadline, optimism was still in order, at least officially, at the start of the week after the agreement established between the United States and the European Union. Switzerland had an agreement, only lacked the approval of Donald Trump. A return to 31% seemed to be unthinkable, we even hoped for a rate lower than 15% of the European Union, which, forced to negotiate, had a too much threatened to reply with its own weapons. It will ultimately be 39%, a blow.

A privileged chimerical relationship

After the announcements of April 2, astonishment could be allowed. Not on the establishment of customs taxes, promised by Donald Trump during his campaign, but on their severity. Today, not having prepared for the worst scenario is a serious fault. While the return to the White House of the Republican was cleared last fall, some were enthusiastic, seeing the opportunity to reopen the file with a free trade agreement.

The arguments that argued in favor of a possible agreement are completely true and rational. But the idea that Switzerland, a liberal country and open to negotiations, would have a privileged relationship with the United States of Donald Trump is a chimera that should have been abandoned several months ago. Since taking office, the American president has repeatedly demonstrated that he did not hesitate to tackle the historic allies of his country. His obsession displayed for trade deficits and his multiple volumes were all clues demonstrating that rationality and good will have little importance in these discussions.

François Nordmann: “Faced with Donald Trump, we are simply devoid”

The reality is that Switzerland was not a priority for Donald Trump. His small size offered him little pressure means unlike those that China or the EU could mobilize. One can question the reasons for the increase in the rate, or the weight of the pharmacy in these discussions at a time when the president wants to obtain a drop in the prices of medicines. The possibility of new negotiations cannot be completely excluded, but the observation is that Switzerland is isolated politically and with few levers to activate.

cassidy.blair
cassidy.blair
Cassidy’s Phoenix desert-life desk mixes cactus-water recipes with investigative dives into groundwater politics.
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