Latest news with #Swiss exports
New York Times
4 days ago
- Business
- New York Times
Why Are Tariffs on Switzerland So High?
Ever since President Trump shocked the Swiss with a 39 percent tariff, one of the highest rates the world, the big question in Zurich, Geneva, Basel and across Switzerland is: Why us? Known for its political neutrality, high-end watches and cutting-edge pharmaceuticals, Switzerland has long prized what it describes as an 'excellent' relationship with America. But as Mr. Trump upends the global trading order, he has singled out countries that he says treat Americans 'unfairly' by exporting more goods to the United States than they buy from it. America's trade deficit in goods with Switzerland was just over $38 billion last year. In the first six months of this year, the deficit ballooned to nearly $48 billion, for one main reason (more on that below). Mr. Trump has railed against the deficit with Switzerland publicly and behind closed doors. In a phone call last week with the Swiss president, Karin Keller-Sutter, Mr. Trump stressed that the country had not done enough to address the deficit. Since then, the Swiss have pushed for continued talks with the Trump administration and are devising a more attractive offer to convince Mr. Trump to reduce tariffs on Swiss goods. What's driving the U.S. trade deficit with Switzerland? Swiss exports to the United States are dominated by a handful of industries. The most distinctive is gold refining. In recent months, two-thirds of Switzerland's exports to the United States were accounted for by various forms of gold. These bars of gold are often sent from London, a trading hub, to Switzerland, a refining hub, where the metal is forged into bars sized for the standards required by U.S. warehouses and then shipped across the Atlantic. Want all of The Times? Subscribe.
Bloomberg
6 days ago
- Business
- Bloomberg
Highest US Tariff Among Developed Nations Takes Effect in Switzerland
Switzerland's government will hold an emergency meeting to consider the fallout from the US tariffs. Nicole Sy explains how the 39% surcharge on Swiss exports to the US compares among developed countries. (Source: Bloomberg)
Forbes
6 days ago
- Business
- Forbes
Swiss Shock - Can Switzerland Reverse The 39% Tariff?
The imposition of a 39% tariff on Swiss exports to the US has been greeted with shock, despair and much ire in Switzerland – the main newspaper NZZ greeting the move as 'absurd'. Considerable offense was taken by the fact that the announcement came on the Swiss National holiday (August 1st). Equally, local business leaders and economists have been perplexed by the fact that the tariffs have been calculated on the back of a trade deficit that was skewed by the export of gold – the deficit is now a surplus. Equally, many of the goods that Switzerland exports to the US, do not have competitors there (Swiss chocolate, watches and more importantly specialized industrial goods which are used by the likes of Boeing). Neither is the Swiss franc a weak currency. There is also a feeling in Switzerland that its role on the international stage, and facilitator of American diplomacy (the Swiss embassy in Tehran has traditionally acted 'for' the US), has gone un-noticed. Swiss politics is normally a very staid affair but this episode has led to infighting across the spectrum, and considerable blame has been focused on the President of the government Council, Karin Keller-Sutter. As a result, the Swiss negotiating team that will return to Washington this week will have representation from the conservative SVP, and more officials from the trade and finance divisions. The Swiss case highlights the flaws in the methodology of the White House approach. While its economy is extremely resilient, the Swiss will not be able to suffer a 39% tariff lightly. Our sense is that the counterargument will centre around a re-framing of the trade relationship between the two countries, a re-evaluation of how Swiss industry in particular helps US firms, and an undertaking for Swiss industry to invest in the US. The hope here is that Switzerland ends up with an EU style deal, of tariffs of 15%, and a somewhat empty promise to invest 'billions' into the US. From a diplomatic point of view, given that the Swiss had traditionally been so helpful to US interests, this is an own-goal by the White House. At the time of writing, there is no indication at all as to whether this episode pushes Switzerland closer to the EU (in terms of trade – there is no question of Switzerland joining the EU). For its part, the EU is still trying to get the White House to agree the wording of deal reached in Scotland – there is ongoing lobbying from the spirits industry in Europe, not to mention the auto manufacturers. The deal is not yet watertight and needs to be implemented by individual members. There is still uncertainty over the threats to place specific tariffs on semiconductors and pharmaceuticals firms based in Europe next week (Ireland in particular) and the USD 600bn that is supposed to be invested by European firms in the US. If sector specific tariffs are severe the backlash to the deal could grow and there is rising chance that it could fall apart.
Reuters
05-08-2025
- Business
- Reuters
Swiss group OC Oerlikon lowers full-year guidance on tariff woes
Aug 5 (Reuters) - Swiss industrial group OC Oerlikon (OERL.S), opens new tab lowered its full-year guidance on Tuesday, citing weak industrial demand and the evolving burden on the economy from U.S. trade tariffs. The group forecast flat to slightly lower sales at a constant foreign exchange rate and an operational EBITDA margin between 17.0% and 17.5%. It had previously guided for stable to low single-digit percentage organic revenue growth and an operating margin of around 18.5%. The U.S. punitive tariff rate of 39% on Swiss goods is higher than nearly any other Western trading partner, and is set to take effect on August 7. According to a survey by economiesuisse, around half of Swiss export-oriented companies expect negative consequences from the tariffs. Oerlikon said its second-quarter orders contracted as trade tensions pushed some customers into wait-and-see mode. It reported an order intake of 405 million Swiss francs ($501 million), compared to a company-compiled consensus of 396 million Swiss francs. ($1 = 0.8090 Swiss francs)
