Swiss government is still talking to the US to lower tariffs
The government 'remains firmly committed to pursuing discussions with the US with the aim of reducing these tariffs as swiftly as possible,' it said in a statement after an emergency meeting on Thursday. 'The Federal Council is maintaining close contact with US authorities and the affected industry sectors.'
President Karin Keller-Sutter returned empty-handed on Thursday morning from Washington, where she had sought to sway Donald Trump before the tariff started. The two-day emergency trip turned into a humiliation as she was denied a meeting with her counterpart and instead only talked to Secretary of State Marco Rubio, whose department doesn't lead trade negotiations for bilateral deals.
Speaking to reporters in Bern, Keller-Sutter said that Swiss negotiators stayed in Washington and are still attempting to get a deal.
'At present, tariff countermeasures in response to the US tariff increases aren't being considered, as they would impose additional costs on the Swiss economy — particularly through higher prices for imports from the US,' the government said, reiterating an earlier stance.
The 39% surcharge on exports — from Swiss-made luxury watches to Nespresso coffee capsules – is the biggest among developed countries and compares with just 15% on the neighbouring European Union. Pharmaceuticals and gold are so far exempt.
While pharmaceuticals are excluded from the trade duties — bringing the average rate below 25%, according to Bloomberg Economics — the stakes for Swiss companies, which are big players in the US market, are high and the scale of the duty exceeded all expectations.
The government 'will also shortly engage in detailed discussions on potential relief measures for Swiss businesses and continue to assess the need for further economic policy action,' according to the statement.
The cooperative stance clashes with a cross-party push of Swiss politicians on Thursday cancel an order for three dozen F-35A fighter jets from US defence conglomerate Lockheed Martin Corp. in response to the tariffs.
The tariff level stunned the Swiss after negotiations that they thought looked promising. But things came to a head late last week when Trump threw out a negotiated framework deal on a call with Keller-Sutter. He was particularly irked by Switzerland's bilateral trade surplus with the US of about $38.5 billion last year.
If the 39% rate comes into effect across the board — including on pharmaceuticals — that would put up to 1% of Switzerland's economic output at risk over the medium term, according to Jean Dalbard of Bloomberg Economics.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
2 hours ago
- Euronews
Trump offers $50 million reward for the arrest of Nicolás Maduro
The Trump administration has doubled its reward for the arrest of Venezuela's President Nicolás Maduro from $25 million (€21.4 million) to $50 million (€42.9 million), accusing him of being one of the world's largest narco-traffickers and working with cartels to flood the US with fentanyl-laced cocaine. 'Under President Trump's leadership, Maduro will not escape justice and he will be held accountable for his despicable crimes,' said Attorney General Pam Bondi on Thursday in a video announcing the reward. Maduro was indicted in a federal court in Manhattan in 2020, during the first Trump presidency, along with several of his close allies. They were charged with charges of narco-terrorism and conspiracy to import cocaine into the United States. The former Trump administration at the time set a reward of $15 million (€12.9 million) for his arrest, which was later raised by the Biden administration to $25 million – the same amount Washington offered for the capture of Osama bin Laden following the 11 September attacks. Despite the big bounty, Maduro remains in power after defying the US, the European Union and several Latin American countries who viewed his 2024 re-election as a sham, and recognised his opponent, Edmundo González, as Venezuela's duly elected president. In July, the Trump administration struck a deal with Venezuelan officials to secure the release of 10 Americans jailed in the capital Caracas, in exchange for Venezuela getting scores of migrants deported by the US to El Salvador. Shortly after, the US reversed an earlier ban on US energy giant Chevron to resume drilling Venezuela after it was previously blocked by US sanctions. Bondi says the US Justice Department has seized more than $700 million (€600 million) in assets linked to Maduro, including two private jets and close to 7 tonnes of cocaine, which was traced directly to the Venezuelan leftist leader. Venezuelan Foreign Minister Yvan Gil released a statement calling the reward 'pathetic' and accused Bondi of orchestrating a 'crude political propaganda operation.' 'We're not surprised, coming from whom it comes from. The same one who promised a non-existent 'secret list' of Epstein and who wallows in scandals for political favours,' Gil said, referring to the backlash Bondi faced after she reversed a promise to release more evidence on the Epstein case. 'Her show is a joke, a desperate distraction from her own misery,' added the top Venezuelan diplomat.
LeMonde
2 hours ago
- LeMonde
US partners seek relief as Trump tariffs upend global trade
President Donald Trump's steeper global tariffs came into effect Thursday, August 7, leaving dozens of US partners scrambling to secure relief from soaring levies that are rewriting global trade practice. Shortly before the new rates kicked in, Washington also announced it would double India tariffs to 50% and hit many semiconductor imports with a 100% duty. Trump's trade policy is a demonstration of economic power that he hopes will revive domestic manufacturing, but many economists fear it could fuel inflation and lower growth. In his latest move, the president raised import duties from 10% to levels between 15% and 41% for various trading partners. Many products from the European Union, Japan and South Korea now face a 15% tariff, even with deals struck with Washington to avert steeper threatened levies. But questions remain surrounding the implementation of these agreements. Others like India face a 25% duty – to be doubled in three weeks – while Syria, Myanmar and Laos face levels of 40 or 41%. Switzerland's government, which failed to convince Trump not to impose a 39% tariff, said after an extraordinary meeting Thursday that it remains committed to talks aimed at lowering levies. Trump's latest wave of "reciprocal" duties – a response to trade practices Washington deems unfair – broadens measures imposed since he returned to the presidency. Wall Street's major indexes mostly dipped, while global markets largely shrugged off the higher tariffs Thursday. 'No charge' The steeper duties maintain exemptions on sectors that Trump separately targeted, like steel and autos. Categories that could be hit later, like pharmaceuticals and semiconductors, are also spared for now. Trump said Wednesday that he plans an "approximately 100% tariff" on semiconductor imports, but with no charge for companies investing in his country or committed to doing so. Companies and industry groups warn Trump's new levies will severely hurt smaller American businesses. But providing some reprieve from the "reciprocal" tariff hike is a clause saying that goods already en route to the United States before Thursday – and arriving before October 5 – will not face the new rates. With the dust settling, at least temporarily, Georgetown University professor Marc Busch expects US businesses to "pass along more of the tariff bill" to consumers. Inventories are depleting and it is unlikely firms will absorb costs indefinitely, he told AFP. Trump is using tariffs to pursue a variety of goals – such as doubling planned duties on India due to its purchase of Russian oil, a key revenue source in Moscow's war in Ukraine. The order threatened penalties on countries that "directly or indirectly" import Russian oil too. The Federation of Indian Export Organizations called the move a "severe setback" impacting nearly 55% of shipments to the United States. Discrepancies Lingering questions remain for partners who have negotiated deals with Trump. Tokyo and Washington appear at odds over the terms of their pact, such as when levies on Japanese cars will be lowered from an existing 25% on US auto imports. Both countries also seem to differ on whether the new 15% toll on Japanese goods would be added to existing levies or – like the EU – be capped at that level for many products. Japan's tariffs envoy Ryosei Akazawa told reporters Thursday that Washington is expected to revise its order such that the new toll does not stack uniformly on existing ones. It would also lower vehicle tariffs on Japanese autos. Washington and Beijing, meanwhile, have a temporary truce in their tariff standoff expiring August 12. Commerce Secretary Howard Lutnick told Fox Business it is likely this will be extended another 90 days. Trump has separately targeted Brazil over the trial of his right-wing ally, former president Jair Bolsonaro, who is accused of planning a coup. US tariffs on various Brazilian goods surged to 50% Wednesday with broad exemptions. Lutnick expects Trump's duties could bring in $50 billion in monthly revenue.
Euronews
9 hours ago
- Euronews
France's top court strikes down pesticide clause in farming law
France's highest court on Thursday blocked a key part of a contentious farming law that would have brought back a banned pesticide. According to the French Constitutional Court, the measure failed to protect the environment and future generations. The rest of the law - known as the 'Duplomb law,' after the senator who proposed it - was allowed to stand. The bill aimed to loosen rules for farmers and fast-track projects like water storage. It was backed by the government and major farming unions and passed in early July. However, it was met with fierce competition from scientists, health experts and green groups. At the heart of the controversy was acetamiprid, a pesticide banned in France since 2018 for its role in harming bees and other pollinators. Some farmers, especially beet growers, had pushed for its return. A student-led petition against the law drew more than 2 million signatures - one of the biggest in French history. Opponents said that the bill was rushed through parliament with barely any debate, and warned that it put public health and biodiversity at risk. On Thursday, the French court ruled that the proposal previously passed was not strict enough and ignored France's constitutional commitment to environment protection. The ruling is a blow to President Emmanuel Macron's government, which had defended the bill until the end. Left wing politicians were quick to react on social media. Manuel Bompard, coordinator of France Insoumise, said that: "The mobilization must continue until the law is withdrawn and a government, more dangerous than ever for the environment and health, is censored." Ian Brossat, co-chairman of the Communist group on the Paris council, welcomed the "excellent news for public health and the environment" and denounced what he described as an "absurd and dangerous" law. Critics called the decision a win for democracy and the planet. Some lawmakers have already vowed to push for a full repeal in the coming months. Acetamiprid is currently approved by the European Union until 2033, and authorized in other member countries.
