US tax yo-yo: a blur for Swiss companies
Keystone-SDA
US President Donald Trump’s decision to impose a 15% global tariff is not fundamentally affecting Swiss exporters, according to some analysts. Others believe that companies are still in limbo.
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Economics Minister Guy Parmelin, who holds the rotating Swiss presidency this year, “takes note of the decision of the Supreme Court of the United States and the statements of the American President” and “does not comment on them”. The government said it was analysing the developments and their consequences and would communicate any decisions “in due course”.
The economics ministry told the Swiss News Agency Keystone-ATS on Saturday that the concrete consequences and developments of the next few days were being “analysed on an ongoing basis and as quickly as possible”. Asked whether the new rate would come into effect quickly, the department would not comment.
Bern maintains its line
On the substance, Bern has not changed its line in the current discussions with Washington. “The main objective of the current negotiations has always been, from the outset, to conclude a legally binding agreement designed to offer Swiss businesses the greatest possible legal certainty”, the economics ministry said.
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“Switzerland is taking account of current developments in the negotiations and is aiming for a result that achieves this objective, irrespective of legal and political developments in the United States”, it added. The authorities are not saying whether the talks could go beyond the end of March deadline.
After the Supreme Court invalidated the legal basis for the previous tariffs, Trump invoked another provision, section 122, to introduce a global tariff of up to 15% for 150 days, Rahul Sahgal, director of the Swiss-US Chamber of Commerce, told Keystone-ATS. Trump initially announced a 10% tariff, before raising it to 15% late on Saturday.
For Swiss companies, the practical effect would remain limited. “I don’t think it will fundamentally change things for most companies”, said Sahgal, referring to adjustments of “two or three percentage points” depending on the sector. The exceptions for pharmaceuticals and gold would remain in place.
In his view, the positive reaction of the markets was mainly due to the institutional signal sent out by the US courts. “The Supreme Court’s decision clearly shows that the rule of law and the separation of powers are working in the United States”, he said, referring to “very good news”.
The United States also remains a key market for Swiss companies. A survey carried out before the introduction of the new tariffs already indicated that almost $200 billion (CHF155 billion) of investment was planned across the Atlantic. For Rahul Sahgal, however, transatlantic trade is entering “a new period” marked by customs duties that are set to last.
“We saw this with the 50% tariffs on steel and aluminium introduced during Trump’s first term between 2017 and 2021. At the time, we had hoped that they would disappear with the arrival of Joe Biden, but they were maintained. So I think we’ve entered a new period.”
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Blur on the effective rate
Other experts are more cautious. Swiss companies “don’t know what rate they will be charged”, said John Plassard, head of investment strategy at Cité Gestion, on Swiss public radio RTS. The announced 10% (15% by the end of Saturday) constitutes “a new general base”, but it is not clear whether it replaces the previous 15% or whether it is in addition to it.
Philippe Cordonnier, head of Swissmem in French-speaking Switzerland, was also interviewed by RTS and agreed that the Supreme Court had not given “all the keys” to interpretation. In his view, it is “absolutely essential” to reach a negotiated agreement between Bern and Washington that provides a stable basis for the long term.
In this context, a Swiss parliamentary delegation will visit the United States from Monday to Friday to discuss tariffs and trade policy. This trip has been planned for a long time, explained Andrea Anastasi, head of international affairs. The United States is Switzerland’s largest export market, with more than CHF1 billion ($1.28 billion) worth of goods being exported every week by 2025, according to the delegation.
Adapted from French by AI/ts
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