Swiss manufacturers warned yesterday that tens of thousands of jobs were at risk after US President Donald Trump hit them with one of the highest tariff rates in his global trade reset, even if there was some relief for the key drugs sector.
The government said it would decide how to proceed after Trump set a 39 per cent tariff on the export-reliant country - more than double the 15pc rate for most European Union imports into the US.
The levy – up from an originally proposed 31pc tariff that Swiss officials had described as “incomprehensible” – is a body blow for the small Alpine nation, which counts the US as the top export market for its watches, jewellery and chocolates.
“It’s a massive shock for the export industry and for the whole country. We are really stunned,” said Jean-Philippe Kohl, deputy director of Swissmem, representing the mechanical and electrical engineering industries.
“The tariffs are not based on any rational basis and are totally arbitrary ... This tariff will hit Swiss industry very hard, especially as our competitors in the European Union, Britain and Japan have much lower tariffs.”
The government said it remained in contact with US authorities about the tariffs and “continues to strive for a negotiated solution”.
The new rate is set to take effect on August 7, and a Swiss source familiar with the matter said negotiations would continue.
“We are not discouraged and continue to strive for an agreement in the interests of both sides,” Foreign Minister Ignazio Cassis told a Swiss National Day event in Gersau.
Swissmechanic, which represents small- and medium-sized companies, said the new rate threatened Switzerland’s future as a business location.
However, there was some respite for the pharmaceuticals sector, which includes industry giants Roche and Novartis, as they were not included in the 39pc rate.
“Swiss authorities understand that the tariffs should not include the pharmaceuticals sector,” a spokesperson for the Economy Ministry said.
Still, the sector is under pressure from Washington to lower prices.
“It is crucial that Switzerland continue negotiations with the US to reduce general tariffs and prevent specific tariffs on pharmaceutical products,” said the industry association Interpharma.
Trump’s announcement differs significantly from a joint draft statement approved by the Swiss government on July 4 after intensive talks with the US, the finance ministry said in a statement, without giving details.
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