Latest news with #KellerSutter
Reuters
21 hours ago
- Business
- Reuters
Switzerland says tariff talks with US continue, gold industry concerned about bullion trade
ZURICH, Aug 8 (Reuters) - Switzerland is continuing discussions with the United States about reducing potentially crippling import duties, its government said on Friday, as the country's gold industry warned exports of gold bars to the U.S. could be severely impacted by a 39% tariff. The tariff 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 Swiss trip led by President Karin Keller-Sutter 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 U.S. tariffs." SECO said it would give no further details on the talks, which could include further concessions Switzerland may offer the U.S. in return for lower tariffs. No discussions were scheduled for Friday, although they are due to continue next week on a technical level, a Swiss source said, without giving further details. The Swiss precious metals association on Friday said it was concerned about an increase in tariffs on gold exports to the United States to 39%. Gold bars of 1 kg and 100 oz were previously exempt from U.S. tariffs, but country-specific tariffs may now apply. Switzerland is the world's largest gold refining centre, with up to 70% of gold produced annually worldwide melted down and processed at the five refineries in the country. The country imports gold bars and resizes them for the U.S. market. Switzerland exported gold bars worth 7.86 billion Swiss francs ($9.7 billion) to the U.S. last year, according to customs data. "We are particularly concerned about the implications of the tariffs for the gold industry and the physical exchange of gold with the U.S., a long-standing and historical partner for Switzerland," said Christoph Wild, president of the Swiss Association of Manufacturers and Traders in Precious Metals. "With a tariff of 39%, exports of gold bars will definitely be stopped to the U.S.," Wild told Reuters. 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 U.S. 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 (ROG.S), opens new tab and Novartis (NOVN.S), opens new tab, made up half of Swiss exports to the U.S. last year, and has not been included in the U.S. tariffs. Business association economiesuisse 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 economiesuisse board member Jan Atteslander. "We still have difficulties understanding this friendly fire, but we are working on ways to cope with it," Atteslander said. U.S. 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 U.S. customers as well as examining shifting their production from Switzerland to Europe or Britain, which have lower tariffs on U.S.-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. "Our companies are always under heavy pressure, so the only way to survive is to innovate," he said. ($1 = 0.8071 Swiss francs)
Reuters
2 days ago
- Business
- Reuters
Switzerland will pursue further talks with US over crippling tariffs
ZURICH, Aug 7 (Reuters) - Switzerland will continue talks with the United States, its president said on Thursday, after President Donald Trumpplaced crippling import tariffs on Swiss goods, which threaten to inflict serious damage on its export-focused economy. The 39% import levy - among the highest of any applied under Trump's global trade reset - took effect at midnight Washington time (0400 GMT) after an 11th-hour effort by Swiss officials failed to produce a better deal. The tariffs are set to throttle the small alpine nation's access to the U.S., a leading export market for Swatch (UHR.S), opens new tab, Rolex and Patek Philippe watches as well as high-end cheeses and chocolates. The U.S. is also the single largest market for Swiss pharmaceuticals, worth $35 billion last year, produced by companies including Roche (ROG.S), opens new tab and Novartis (NOVN.S), opens new tab, though those exports are not currently covered under the 39% rate. "For the affected sectors, companies, and their employees, this is an extraordinarily difficult situation," President Karin Keller-Sutter told reporters following an urgent meeting of the seven-member Federal Council - Switzerland's governing cabinet. Keller-Sutter left Washington on Wednesday without a deal following a hastily organised trip during which she did not meet with Trump or any of his leading trade representatives, according to two sources. Her proposal for a 10% tariff rate was rejected by U.S. officials, one of the sources added. "We have seen in other cases that President Trump's positions can evolve," said Swiss lawmaker Damien Cottier, chairman of the Swiss-U.S. parliamentary association. "We must continue to negotiate and argue our case, which is a good one." Dozens of countries that have failed to strike deals with Washington are facing new tariff rates, which U.S. importers began paying on Thursday. "BILLIONS OF DOLLARS, LARGELY FROM COUNTRIES THAT HAVE TAKEN ADVANTAGE OF THE UNITED STATES FOR MANY YEARS, LAUGHING ALL THE WAY, WILL START FLOWING INTO THE USA," Trump wrote on his social media platform Truth Social. Switzerland was stunned by Trump's decision last week to apply the steep rate, which is much higher than those negotiated by the European Union, Britain, Japan and South Korea. Thursday's front page of the daily tabloid Blick was all black with the banner headline "39%". "This number is insanely high," said Manfred Elsif, director of research at the University of Bern's World Trade Institute. "Trump is simply obsessed with trade deficits in goods and does not understand that his short-sighted actions sour relations with allies." Switzerland removed tariffs on nearly all imports in 2024, extending virtually free access to its markets for U.S. products. But Keller-Sutter said last week that Trump was focused on its trade surplus with the United States, which amounted to 38.5 billion Swiss francs ($48 billion) last year. Industry associations and economists have said the tariffs will inflict major damage on the economy, put jobs at risk and curtail growth. They could also push the Swiss National Bank to cut interest rates next month. Hans Gersbach, an economist at KOF Swiss Economic Institute at ETH, at Zurich University, estimated that if the levies remain in place for an extended period, it would result in a GDP loss of 0.3% to 0.6% over the next year. "We will not enter a recession, but we are moving towards stagnation," he said. Switzerland's private sector urged the government to continue talks with Washington. "We are completely stunned because the horror scenario becomes reality now. And we fear this means the death of the export business of our industry to the U.S.," Jean-Philippe Kohl, vice director of industry association Swissmem, told Reuters. Most companies kept a low profile on Thursday, preferring not to comment on the tariffs' expected impact. "I think this is part of the game, to create chaos and make announcements every day," Zurich Insurance (ZURN.S), opens new tab CEO Mario Greco, speaking as the company reported its first-half results, said of Trump's tariff announcements. The Swiss blue-chip index (.SSMI), opens new tab was, meanwhile, up 0.8% at 1045 GMT, in line with broader markets, after hitting its lowest level since late April on Monday. The franc firmed, leaving the dollar down 0.1% on the day at 0.80605 francs . "The lack of any drama so far on Swiss markets suggests a hope of some form of deal in the coming weeks," said IG broker Chris Beauchamp. ($1 = 0.8047 Swiss francs)
Reuters
3 days ago
- Business
- Reuters
Swiss president to meet US Secretary of State Rubio for talks on Wednesday
ZURICH, Aug 6 (Reuters) - Swiss President Karin Keller-Sutter will meet U.S. Secretary of State Marco Rubio on Wednesday, the State Department said, as Switzerland tries to win a reprieve from U.S. tariffs of 39% on Swiss imports. Keller-Sutter and Business Minister Guy Parmelin flew to Washington on Tuesday for last-minute negotiations before the tariffs go into effect on Thursday. The Swiss president, who is leading a delegation of officials, will meet with Rubio for a closed meeting at the State Department at 10.15 Washington time, according to the public schedule of the department. The meeting is scheduled to last one hour. The Swiss government declined to comment on the meeting or whether other meetings with American officials were planned. Switzerland desperately wants to negotiate down the 39% tariffs on its exports to the United States announced by U.S. President Donald Trump on Friday. The European country was stunned by the announcement, which threatens major damage to its export-orientated economy by reducing access to its biggest overseas market. The United States is a big buyer for Swiss watches, machinery and chocolate, which would all suffer from the tariff that is at a much higher level than import duties agreed between the U.S. and the European Union, Britain and Japan. Swiss industry has welcomed the efforts by Bern to find a solution to the tariff situation, which threatened thousands of jobs in Switzerland. "We greatly appreciate the tireless commitment of the Federal Council and the Federal Administration and welcome the efforts to find a solution with the United States," said Noe Blancpain, executive board member of industry association Swissmem.
Reuters
5 days ago
- Business
- Reuters
Switzerland says it's ready to make Trump 'more attractive offer' on trade
ZURICH, Aug 4 (Reuters) - Switzerland is ready to make a "more attractive offer" in trade talks with Washington, its government said on Monday, following a crisis meeting aimed at averting a 39% U.S. import tariff on Swiss goods that threatens to hammer its export-driven economy. The Federal Council - the country's governing cabinet - said it was determined to pursue discussions with the United States, if necessary beyond the August 7 deadline that U.S. President Donald Trump has set for the tariff to come into effect. "Switzerland enters this new phase ready to present a more attractive offer, taking U.S. concerns into account and seeking to ease the current tariff situation," it said in a statement. The statement said it was committed to securing fair treatment compared with its primary trading competitors, but did not give any details on what the Swiss government may offer. It was not currently considering any countermeasures, it added. Switzerland was left stunned on Friday after Trump hit it with one of the highest tariffs in his global trade reset, with industry associations warning that tens of thousands of jobs were at risk. The duties are scheduled to go into effect on Thursday, giving Switzerland, which counts the U.S. as its top export market for pharmaceuticals, watches, machinery and chocolates, a small window to strike a better deal. The government declined to comment on whether Swiss President Karin Keller-Sutter would travel to Washington for more talks, as called for by some, including Nick Hayek, CEO of flagship Swiss watchmaker Swatch (UHR.S), opens new tab. The White House said on Friday it decided on the 39% import duty because of what it called Switzerland's refusal to make "meaningful concessions" by dropping trade barriers, calling the two nations' current trade relationship "one-sided". Swiss industry leaders and politicians, however, have struggled to understand why the country was singled out. Monday's statement pointed out that bilateral trade between the two nations has quadrupled in the past two decades, and Switzerland is now the sixth-largest investor in the United States. "Switzerland unilaterally scrapped all tariffs on industrial goods as of 1 January 2024, meaning over 99% of U.S. goods enter Switzerland tariff-free," it said. Trump has stated he wants to rebalance global trade, claiming that current trade relations are stacked against the United States and are responsible for a $1.2 trillion U.S. goods trade deficit. Switzerland had a 38.5 billion Swiss franc ($48 billion) trade surplus with the U.S. last year. "The president (Trump) is really focused on the trade deficit, because he thinks that this is a loss for the United States," President Keller-Sutter told Reuters on Friday. Bern's statement on Monday said the new tariff rate would apply to nearly 60% of Swiss exports to the U.S. and "puts Switzerland at a distinct disadvantage compared with other trading partners with similar economic profiles". The EU, Japan and South Korea, which have negotiated 15% tariff rates with Washington, all have larger trade surpluses with the U.S. - around $235 billion for the EU, $70 billion for Japan, and a nearly $56 billion surplus for South Korea. Swiss Business Minister Guy Parmelin, who over the weekend said the government was open to revising its offer, said options included Switzerland buying U.S. liquefied natural gas or further investments by Swiss companies in the United States. While the government appears focused on proposing a more enticing deal to Washington, some Swiss politicians have pushed for retaliation, including calls to scrap 6-billion-franc deal to buy F-35A Lightning II fighter jets from the United States. The new tariff rate - up from an originally proposed 31% tariff that Swiss officials had already described as "incomprehensible" - would deal a major blow to Switzerland's economy. Swiss economic output would be reduced by 0.3% to 0.6% if the 39% tariff was imposed, said Hans Gersbach, an economist at ETH, a university in Zurich. That figure could rise above 0.7% if pharmaceuticals, which are currently not covered by the U.S. import duties, are included. Prolonged disruptions could shrink Swiss GDP by more than 1%, Gersbach said. The tariffs could also see the Swiss National Bank cut interest rates in September, according to Nomura. An index of Swiss blue-chip stocks (.SSMI), opens new tab was down 0.4% on the day, lagging the broader regional STOXX 600 index (.STOXX), opens new tab, which rose 0.8%. In Zurich, shares in high-end watchmakers such as Richemont (CFR.S), opens new tab and Swatch fell in volatile trading. Richemont stock was last down 1.5%, having dropped as much as 3.5% earlier, while Swatch shares were down 1.8%, having fallen by as much as 5%. On Monday, the Swiss franc was the worst-performing major currency against the dollar, which was last up 0.4% at 0.8073 francs, not far off Friday's one-month highs. ($1 = 0.8088 Swiss francs)
France 24
5 days ago
- Business
- France 24
Swiss eye 'more attractive' offer for Trump after tariff shock
The Alpine nation faces a 39-percent duty, one of the highest among the dozens of countries that will be hit by new tariffs that are due to come into force from Thursday. The Swiss stock market tumbled by more than two percent when it opened on Monday before paring its losses later in the day. It was closed for a national holiday when Trump unveiled the tariffs on Friday. Trump had originally threatened in April to slap a 31-percent tariff on Switzerland in April and the Alpine country had swiftly decided to negotiate with the United States. By comparison, the 27-nation European Union struck its own deal with Trump and will face tariffs of 15 percent, down from a previous threat of 30 percent. Swiss President Karin Keller-Sutter has said Trump believes that Switzerland "steals" from the United States by enjoying a trade surplus of 40 billion Swiss francs ($50 billion). The Swiss Federal Council said on Monday it would "continue negotiations with the aim of reaching a trade deal", even beyond the Thursday deadline. "Switzerland enters this new phase ready to present a more attractive offer, taking US concerns into account and seeking to ease the current tariff situation," the council said in a statement. It said the looming tariff put the country "at a distinct disadvantage compared with other trading partners with similar economic profiles", citing lower duties for the EU, Britain and Japan. US Trade Representative Jamieson Greer, however, warned on Sunday that "the coming days" were not likely to see changes in any duties as the "tariff rates are pretty much set". Chocolate, watches, pharmaceuticals Hans Gersbach, deputy head of the KOF Swiss Economic Institute, said the tariffs could cut the country's annual growth by between 0.3 and 0.6 percent. But it could be as much as 0.7 percent if the pharmaceutical industry, which has so far been exempt from tariffs, is targeted by Trump. Pharmaceutical products account for more than half of Swiss exports, the economist noted. Analysts at Swiss investment managers Vontobel said in a note they believed "there is some hope for an agreement on US tariffs for Switzerland" that would bring them down to the 15 percent set for other countries However, they added, if the 39-percent tariffs remain in place, earnings for key sectors such as watchmakers "could be hit substantially". The chocolate industry association, Chocosuisse, said the tariffs were a "tough blow" for the sector, which is already reeling from a 10-percent duty.
