Switzerland gets the highest US tarrif: Trump imposes 39%

Just right for the Swiss National Day, the 1st August, Donald Trump informed that Switzerland will be hit with the highest European tariffs: 39%.

Why?

Yes, the trade deficit, so Trump, between Switzerland and the US is USD 40 billion. And Switzerland is a rich country, exporting mainly luxury goods – that’s why? In addition, Trump wrote to Swiss pharma firms to lower their prices for the US markets: Trump explains that it is unfair that US consumers of Swiss pharmaceutical products pay up to three times more than citizens of other countries.

Switzerland is unhappy and feels unfairly treated. The official question in Switzerland: why? Did the Swiss fail in the negotiations?

Swiss import duties are rather low. Import VAT is 8.1% and the average customs duty is 1.7%. So, not to compare with the new US 39% tariffs on imports from Switzerland.

The official Swiss statement reads: “As Switzerland has eliminated all custom duties on imported industrial products, there is no problem with reciprocity between Switzerland and the U.S. The new tariffs constitute a severe problem for our bilateral relations.”

The Swiss watch industry, producing probably the most valuable single items to export from Switzerland to the US has suffered lately with reduced sales worldwide, in particular, in China. The industry is facing restructuring. The new 39% will be a further hit on this once thriving Swiss industry.

Happy Swiss National Day from the US. Yours faithfully, MAGA 39.

And bye-bye USA: Swiss industries and banks must be reminded what they will find going West. In particular, UBS shall rethink their plans to move the headquarters to the US. Switzerland shall look into the rest of the World and not falsely focus on the US. This is a wise recommendation, not only for economic decisions but even more for political strategies, such as the abandoning of the Swiss neutrality in the Ukrainian conflict