{"id":60380,"date":"2025-08-05T14:58:08","date_gmt":"2025-08-05T14:58:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/60380\/"},"modified":"2025-08-05T14:58:08","modified_gmt":"2025-08-05T14:58:08","slug":"switzerland-scrambles-to-shed-sky-high-tariff","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/60380\/","title":{"rendered":"Switzerland scrambles to shed sky-high tariff"},"content":{"rendered":"

Like a straight-A student living the nightmare that their teacher called their parents to say they\u2019re on the verge of failing math, famously conflict-avoidant Switzerland is racing against the clock to get out of the fight President Trump picked with the country last week. He slapped Switzerland with a punishing 39% tariff\u2014the highest among industrialized nations\u2014and more than double the 15% import duty the EU negotiated recently. Yesterday, Swiss leaders said<\/a> they\u2019re \u201cready to present a more attractive offer,\u201d and would address US concerns.<\/p>\n

The trade barrier\u2014which one Swiss newspaper called the country\u2019s biggest defeat since France beat it in the Battle of Marignano in 1515\u2014came after a phone call between Trump and Swiss President Karin Keller-Sutter last week. It blindsided negotiators who reportedly believed that they were on track to seal a favorable trade deal.<\/p>\n

The country\u2019s leaders are now getting flak for bungling talks and are working to change Trump\u2019s mind before the new tariff rate is slated to kick in on August 7.<\/p>\n

Not feeling neutral<\/p>\n

The steep tariff could risk tipping Switzerland\u2019s economy into a recession, as the US accounts for a sixth of all the goods the country sends abroad. Switzerland\u2019s claim to fame as a top-shelf goods supplier is what made it a target for some of Trump\u2019s heaviest tariffs:<\/p>\n

The land of bougie chocolate and watches has the 13th-largest annual trade surplus with the US, amounting to $38 billion last year.Though a chunk of that comes from Swiss gold exports (the country is a major transit point for the precious metal), some local business leaders blamed the country\u2019s pharma giants for inspiring Trump\u2019s ire. The $35 billion worth of Swiss drugs sent to the US yearly contributes to the trade imbalance.<\/p>\n

Even though pharma is currently exempt from the import duty, Switzerland-based Novartis and Roche\u2019s US subsidiary Genentech were among the major pharma purveyors that POTUS recently gave 60 days to lower drug prices.<\/p>\n

Looking ahead\u2026Keller-Sutter said Switzerland doesn\u2019t have many concessions it could give the US, as it already has a 0% tariff rate for almost all American products. But Switzerland\u2019s business minister Guy Parmelin said the country could try to win Trump over by offering to buy more American liquefied natural gas or ramping up investments in the US economy.\u2014SK<\/p>\n

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