Avoid 39% tax
Does Switzerland still have something to negotiate with Trump?
A few days before the US ax of August 7 on customs duties, four elected officials tell us how they see the continuation of the discussions.
Can Donald Trump go back to the customs duties imposed on Switzerland? The time runs until Thursday.
Getty Images via AFP
- The Federal Council meets urgently after the threats of Donald Trump.
- The increase in customs taxes at 39% is to come into force on August 7.
- Switzerland has a very limited room for maneuver to negotiate.
- Should we play on gold, pharmacy or F-35? Each track is risky.
The countdown is launched. It is this Thursday that 39% customs duties must strike Swiss exports for the United States. And if these are a shock as well For the policy that the economyis that Washington has become our First trading partner in the matter.
The Federal Council met this Monday at 11:00 am by videoconferencing to take stock. It must be said that this weekend of 1is August saw our relationship with Trump falling from Charybde to Scylla. Instead of a deal favorable to Switzerland, the American president promised to inflict one of the highest rates in the world.
No countermeasures at present
Following this extraordinary session, the government has split of a press release Shortly before 3:00 pm, where he announced that he was “determined to continue the discussions and negotiations engaged with the United States beyond the joint declaration proposal on the table, and if necessary, beyond August 7, 2025”. And to specify: that he “does not envisage countermeasures at present”.
The Federal Council adds that it wants to continue to diversify trade relations with all of its international partners and is ready to act to avoid layoffs.
But a few days before the fateful date, and facing a Trump who seems back as never before Against us, is it still possible to soften the blow? In summary, does Switzerland still have something to negotiate? Representatives of the four government parties respond.
“The attitude of the Federal Council worries me”
Olivier Feller (PLR/VD).
Parliament services
“What we have to negotiate?” August 7, it’s Thursday. And in such a short term, I don’t really see what we could do, replies Olivier Feller (PLR/VD), member of the Economy and Raches Commission. The billions of investments that Switzerland – by its companies – was ready to do in the USA have given nothing. Regarding the trade balance, Trump does not want to hear about the services we import from the USA which – in fact – balance the goods exported by Switzerland. As for the privileged relationship that we thought we had with the United States, it seems to have been ruined in a phone call. You can possibly play on gold. But you have to be realistic: at best, this would allow us to go down to 30% by fall, while our goal is to be at the level of the 15% obtained by the EU. What worries me too is that the Federal Council does not take the measure of what is going on. Organize a simple videoconferencingwhile a major crisis is likely to hit the country, it is not what I call to become aware of the seriousness of the situation. ”
“Trump only understands the balance of power”
Samuel Bendahan (PS/VD).
Parliament services
“We need a fundamental change of course in relations with the United States. Switzerland wanted to kneel before Trump and this strategy failed colossal, says Samuel Bendahan (VD), co -president of the Socialist Group in Parliament. This endangers both our values and our economy. Instead, we need closer cooperation with the EU and a concentration on stabilization of the bilateral route. It is clear that we must now avoid the worst for our export industry and the jobs concerned during possible new customs negotiations. We must take measures which are to our advantage, such as the interruption of the purchase of the F-35, which would remove a security flaw while avoiding additional costs in billions. We can also play on gold, which enormously added our trade balance, without bringing much to our economy. But in the end, Trump only understands the balance of power, and so that it is more favorable to Switzerland, it is important to get closer to the EU. ”
“We could play on the Pharma, but it’s risky”
Céline Amaudruz (UDC/GE).
KEYSTONE
“What the United States should understand is that we are their 6e Global investor and that our trade balance is in balance, if we take into account imported services, analyzes the national councilor Céline Amaudruz (GE), vice-president of the UDC. But as long as Donald Trump does not want to hear it, we are going to go in circles. There is however an area in which Switzerland holds the knife by the handle, it is the pharmacy. The American health system is dependent on our drugs. The proof is that Donald Trump tries to directly negotiate with companies so that they drop their price. If we decide to close the tap, then the United States would be put under very high pressure. The problem is that this solution is almost unrealistic as it is risky. Switzerland should compensate for the shortfall of the Pharma, which would be in billion. I fear that we had to prepare for a crisis of the magnitude of that of the COVIR, where the State will have to help companies not to flow. ”
“You have to make your back round while waiting for your departure”
Charles Juillard (Center/Ju).
Parliament Service
“If Donald Trump is angry, it will be complicated to bring him back to the negotiation table, whatever we do, reacts Senator Charles Juillard (Ju), vice-president of the center. Playing on the gold refinery to reduce our trade balance, I don’t believe it. If he wants to annoy us, he will find another excuse anyway. As for the F-35, it would be shot in the foot to tear the contract, as some offer. We would not have more combat aircraft, as for the United States, they would immediately find a new market to sell them. I fear that we have no choice but to make the round back while waiting for his departure from the White House. Meanwhile, we have to develop new markets to diversify our exports and make them less dependent in the United States. It is also necessary to take internal measures to help companies that would be in difficulty due to these customs duties. This can go through partial unemployment or loans measures. ”
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