Following President Donald Trump’s announcement of a 31% tariff on Swiss goods, the Federal Council has opted for diplomacy over retaliation, it announced on Thursday. It said it will closely examine the measures and their implications but has no immediate plans to introduce countermeasures.
The Swiss government expressed concern over the steep tariffs, describing them as particularly punitive. The Federal Council does not endorse the actions of the US administration and will work to clarify any misunderstandings, it said in a statement on Thursday – see press release.
The government regrets Washington’s move away from rules-based trade but seeks dialogue and will not rush to impose direct countermeasures in response to new American tariffs on Swiss goods imported into the US. Instead, the Federal Council aims to clarify misunderstandings and maintain contact with US authorities, said President Karin Keller-Sutter.
The State Secretariat for Economic Affairs (SECO) has been given the task of assessing the impact of the tariffs and proposing appropriate responses. Nonetheless, Economy Minister Karin Keller-Sutter emphasised that an escalation is clearly not in Switzerland’s interest.
Economy Minister Guy Parmelin said he does not foresee a recession, noting the economy’s resilience and the exclusion of pharmaceuticals and gold from the tariffs, Switzerland’s two largest exports to the US. However, sectors such as machinery, watches and agri-food products will be hit.
Ms Keller-Sutter and Mr Parmelin will visit the US in late April. Washington has indicated a willingness to negotiate reductions, though whether a deal can be struck remains uncertain.
Switzerland and the US have a close economic partnership. Trade between the two nations has increased fourfold over the last 20 years.
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