Tariff talks continue, as job losses loom in Switzerland

RTÉ News​

5 days ago

Switzerland is continuing discussions with the United States about reducing tariffs, its government said on Friday, as economists warned some industries would suffer "severe" job losses from the 39% tariff imposed by the US on Swiss imports.
The talks in Washington are being led by Helene Budliger Artieda, head of the State Secretariat for Economic Affairs (SECO), and come after the import levy - among the highest of any applied under President Donald Trump's global trade reset - took effect on Thursday.
A last-ditch effort by a Swiss delegation to Washington, which included President Karin Keller-Sutter, had failed to produce a better deal.
"Discussions with the United States are ongoing," SECO said in a statement to Reuters on Friday. "The discussions have consistently focused on reducing the additional US tariffs."
SECO said it would give no further details on the talks, which could include further concessions Switzerland may offer the US in return for lower tariffs.
Economist Hans Gersbach, from the KOF Economic Institute at ETH, a university in Zurich, estimated that 7,500 to 15,000 jobs could be lost in Switzerland as a result of the US tariffs.
"The effect will be severe in some industries like watches, machinery and precision instruments," Gersbach said.
"If pharma was also targeted, the figure would be higher," he added, although no figure has yet been calculated.
Switzerland's giant pharmaceuticals sector, which includes Roche and Novartis, made up half of Swiss exports to the US last year, and has not been included in the US tariffs.
Business association economie suisse held a seminar earlier this week to help companies navigate the tariff turmoil.
Companies were very concerned, but were focused on trying to find solutions, said economie suisse board member Jan Atteslander.
"We still have difficulties understanding this friendly fire, but we are working on ways to cope with it," Atteslander said.
US importers would increase their prices for Swiss products to deal with the tariff impact, Atteslander said, which could lead to lower sales, while profit margins would also be cut.
Companies were speaking with their US customers as well as examining shifting their production from Switzerland to Europe or Britain, which have lower tariffs on US-bound products.
The crisis is the latest shock to hit Swiss companies, which have long battled an appreciating Swiss franc, which makes its products more expensive abroad, said Atteslander.
"We will cope with it, it's a pressure we are used to," he said. "Our companies are always under heavy pressure, so the only way to survive is to innovate."