Latest news with #Swissmechanic
Yahoo
01-08-2025
- Business
- Yahoo
'Great regret': Switzerland reels after US tariff blow
Switzerland was reeling on Friday from the blow from US President Donald Trump's latest tariffs, after a new list issued by the White House detailed levies of 39% on Swiss exports to the United States, exceeding the country's worst fears. In April, Trump announced planned tariffs of 31% for Switzerland. The government in Bern said it regretted the move, posting on its official X account: "The Federal Council notes with great regret that, despite the progress made in bilateral talks and Switzerland's very constructive stance from the outset, the US intends to impose unilateral additional tariffs on imports from Switzerland." For the European Union, a tariff rate of 15% applies. The new levies are set to come into force on August 7, after an initial roll-out set for Friday was delayed at short notice. The business association Economiesuisse described the tariffs as unjustified, describing them as "a very serious burden for the Swiss economy." Switzerland is the sixth most important foreign investor in the US, with Swiss companies having created some 400,000 jobs there, it said. The tariffs endanger the Swiss industrial base, wrote Swissmechanic, a professional association of small and medium-sized enterprises in the metal, electrical and mechanical engineering industries. The business associations were urging the government to do everything possible to achieve a reduction in the tariff in the coming days. The US is by far the largest sales market for Swiss companies. Exports amounted to 65.3 billion francs ($80.2 billion) last year, accounting for nearly 17% of total exports. Germany follows with 45.2 billion francs.
Reuters
01-08-2025
- Business
- Reuters
Swiss stunned by US tariff hike, seek negotiated solution
ZURICH/GENEVA Aug 1 (Reuters) - Swiss manufacturers warned on Friday that tens of thousands of jobs were at risk after U.S. President Donald Trump hit them with one of the highest tariff rates in his global trade reset, even if there was some relief for the key drugs sector. The Swiss government said it would analyse the new situation and decide how to proceed after Trump set a 39% tariff on the export-reliant country - more than double the 15% rate for most European Union imports into the United States. The levy - up from an originally proposed 31% tariff that Swiss officials had described as "incomprehensible" - is a body blow for the small European nation, which counts the U.S. as the top export market for its watches, jewellery and chocolates. "I am stunned. These tariffs are based on no rational basis and are arbitrary," said Stefan Brupbacher, director of manufacturers' association Swissmem. "This decision puts tens of thousands of jobs in the industry at risk." The Swiss Federal Council said it remained in contact with U.S. authorities about the tariffs and "continues to strive for a negotiated solution". The new tariff rate is set to take effect on August 7, and a Swiss source familiar with the matter said the two sides would continue negotiating ahead of that deadline. Swissmechanic, which represents small- and medium-sized companies, said the new rate was excessive and threatened Switzerland's future as a business location. However, there was some respite for the country's pharmaceuticals sector, which includes industry giants Roche (ROG.S), opens new tab and Novartis (NOVN.S), opens new tab, as they were not included in the 39% rate. "Swiss authorities understand that the tariffs should not include the pharmaceuticals sector," a spokesperson for the Swiss Federal Department of Economic Affairs told Reuters. Still, the pharmaceuticals sector is under pressure from Washington to lower prices of drug exports to the United States. "This is a black day for the Swiss economy," said industry association Interpharma. "It is crucial that Switzerland continues negotiations with the U.S. to reduce general tariffs and prevent specific tariffs on pharmaceutical products." Trump's announcement differs significantly from a joint draft statement approved by Switzerland's Federal Council on July 4, following intensive talks between both countries, the federal finance ministry told Reuters in a statement, without giving details. Since then, Swiss officials have been waiting for a sign-off on what was understood to be a preliminary framework for a deal, according to a person familiar with the matter. Swiss Finance Minister Karin Keller-Sutter and Economy Minister Guy Parmelin had visited Washington for talks to press their case: Switzerland is the seventh-largest investor in the United States. The Alpine country sent about 65 billion Swiss francs ($80 billion) of goods to the United States last year, or about one-sixth of its total exports of 394 billion francs. Total trade with the U.S. was 91.9 billion francs, or about 12.7% of all imports and exports, Swiss government data show. Switzerland's trade surplus with the U.S. last year was almost 38.7 billion francs. The U.S. is Switzerland's top foreign watch market, accounting for 16.8% of exports, worth 4.4 billion francs, according to Federation of the Swiss Watch Industry. ($1 = 0.8134 Swiss francs)
Reuters
27-02-2025
- Business
- Reuters
Swiss economy grows 0.5% in fourth quarter, boosted by pharma and chemicals
ZURICH, Feb 27 (Reuters) - The Swiss economy grew by a better than expected 0.5% in the fourth quarter, the government said on Thursday, as the country's pharmaceuticals sector compensated for weaknesses elsewhere in the rest of the export-orientated economy. The quarterly figure, which was adjusted for sporting activities, was an improvement from the 0.2% rate in the third quarter and better than the 0.2% forecast in a Reuters poll. Switzerland is home to several major international sports organisations, including soccer's global governing body FIFA, and their activities and value-added contribute to Swiss gross domestic product. The chemicals and pharmaceuticals sector increased its output by 2.7%, which contributed to an increase in exports, said the State Secretariat for Economic Affairs (SECO), which compiled the figures. "In the other industrial sectors, value added essentially stagnated," SECO said. Despite an improvement at the end of the year, Switzerland's economic performance was held back by a weak start to 2024, reducing its annual economic growth to 0.9%, SECO said. This was a decline from the 1.2% rate in 2023, and was half the country's long-term average growth rate of 1.8%. The traditionally resilient Swiss economy came under pressure last year as it struggled with weaker demand elsewhere, particularly in Germany and China. On Wednesday, Swissmechanic - the association representing small and mid-sized manufacturers - said tough conditions were continuing, with nearly 60% of companies seeing a decline in new orders. "The mood in industry is quite negative at the moment – the crisis has been going on since April 2023 and many companies don't see signs of an improvement,' said Swissmechanic President Nicola Tettamanti. "They are struggling because their main markets in Germany and China are down, there is overcapacity among customers and areas like the automotive sector have gone into complete shock in Europe," said Tettamanti, adding that companies were cutting back on investments and hiring.
