The Federal Council is planning to hold a video conference today to discuss how Switzerland should respond to the 39-percent customs duties for Swiss imports to the United States.
Still reeling from the shocking news delivered on the National Day on August 1st that President Trump decided to impose such hefty duties on Swiss imports — among the highest in the world — the ministers will urgently discuss how to sway the US to lower the tariffs.
“We will now analyse the situation and try to find a solution,” president Karin Keller-Sutter said. “I can’t say what the outcome will be, but it will certainly damage the economy.”
Difficulties ahead
Even though the Swiss are skilled in the delicate art of diplomacy and high-stake negotiations, lowering the tariffs will not be an easy task.
“The tariffs will be difficult to renegotiate,” said Philippe Nell, a former government negotiator.
And imposing Swiss sanctions as a response — as some politicians have suggested — “is not a good idea, because Switzerland’s share in the US businesses is minimal,” and this measure would therefore not have any significant impact on America’s economy.
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Not all export-oriented businesses will be slapped with the 39-percent rate, however.
Some Swiss companies could be exempted from the high tariff — if they meet certain conditions
Swiss pharmaceutical giants Roche and Novartis, for instance, may not have to pay these high duties if, in exchange, they will lower the prices of drugs they export to the United States.
In April, when customs duties were originally announced, President Trump excluded several sectors from higher tariffs, such as the pharmaceutical industry, precious metals sector, and various electronic products, according to Matthias Bopp, head of international trade at KPMG financial services company.
However, to benefit from this exclusion, pharma companies have to reduce prices on US-bound medicines within the next 60 days.
