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Trump tariffs ‘poison’ for Swiss manufacturing

Swissmem: Trump tariffs also affect the Swiss economy
Swissmem: Trump tariffs also affect the Swiss economy Keystone-SDA

Tariffs imposed by the United States against Mexico, Canada and China also impact on Switzerland, according to manufacturing lobby group Swissmem.

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“The tariffs are unsettling, which is poison for the global economy,” Stefan Brupbacher, director of Swissmem, told the Blick newspaper.

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Goods will become more expensive, especially in the US. If the US economy falters, this would also have consequences for Switzerland.

Swiss companies with subsidiaries in China or Mexico would be particularly affected. “Not everyone has the opportunity to pass on the tariffs to US customers,” Brupbacher said. The pressure on suppliers could increase, particularly in highly competitive sectors such as the automotive industry. They would either have to produce more cheaply or risk losing their orders.

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Countermeasures by the affected countries, such as the punitive tariffs introduced by Canada on US products, could further exacerbate the situation. Brupbacher warned of a possible escalation spiral, as seen in the global economic crisis of the 1930s.

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Swiss tariffs abolished

Switzerland does, however, have some advantages. All industrial tariffs, including on products from the US, have already been abolished in the country. Switzerland is also a major investor in the US and creates skilled jobs there.

It is now up to the federal government to emphasise the importance of these relationships to the US and prevent any possible misunderstandings.

On Sunday, US President Trump imposed far-reaching punitive tariffs on goods from Canada, Mexico and China. The orders he signed impose tariffs of 10% on imports from China and 25% on imports from Mexico and Canada. A rate of 10% applies to energy imports from Canada.

Trump’s decrees also contain a passage that provides for a possible increase or extension of the tariffs if the countries affected respond with retaliatory measures such as counter-tariffs on US products.

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Translated from German with DeepL/mga

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