US Hits SwissCuckoo, Clocks,Chocolate & Gold Bars with 39% tariffs

By Rhod Mackenzie

Switzerland, is a country that has traditionaly produced cuckoo clocks fine and expensivel chocolate and plus it had many of what used to be secretive private  banks ,its society has always been thought of as predictable and reliable plus it has also historically been both prosperous and traditionally neutral, so, why has the US President Donald Trump ,slapped it with serious sanctions of 39% on all its exports to the USA?
In Switzerland, the imposition of the sanctions has already been described as somwhere between a "shock" and a "catastrophe". 
So what is the reason for the White House's displeasure with this country?
Now On 1 August, Switzerland celebrated its national holiday in honour of the founding of the state. However, this year's celebration was marred by an unexpected and unwelcome present from the US President, Donald Trump. He has just imposed US import duties on Switzerland of 39% – the highest in Europe and one of the highest imposed on anywhere country anywhere else in the world.

The blow was considered all the more sensitive because earlier, in April, the figure of only 31% was discussed, and negotiations between the Swiss authorities and the Americans allowed them to hope for some easing of the conditions.
Switzerland has now been ranked fifth on the list of countries that the Trump administration has imposed the highest customs tariffs on, following Brazil (50%), Syria (41%), Laos and Myanmar (40%). Incidentally, Canada, a neighbouring country of the USA, has been less impacted than Switzerland, with a 35% duty rate applied.BTW these figures may change after I record this as Trump does change his mind more than a woman does her arguements

In the EU countries, which received only 15% tariffs, the media are working to assure their citizens that they have been treated very fairly and that the situation could have been worse, the Swiss establishemt however are in a state of disbelief.
The rapidity of these events have taken many by surprise, and it appears that there was insufficient time to prepare for them.
"This is a significant setback, particularly for an export industry that is already facing significan challenges," stated Philippe Cordonnier, a board member of Swissmem, the association representing Switzerland's mechanical, electrical and metallurgical industries, in an interview with Le Temps newspaper.
Its exports to the US used to account for 15% of total exports, but the impact of current events is yet to be seen.
Isabelle Moret, the Minister of the Economy of the canton of Vaud, has described the situation as a "disaster for local enterprises", given the fact that a quarter of all exports from the region go to the United States. Analysts have already calculated that if Trump does not withdraw his decision, Switzerland's GDP risks losing 0.3 to 0.6%.
The Swiss Radio and Television channel Schweizer Radio und Fernsehen (SRF) has reported that "the US president is considering using his tariff policy to reduce the US trade deficit with Switzerland. He also claimed that some countries have not made sufficient concessions in the negotiations or have not sided with the US enough on economic and security issues."
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In early July, the Swiss government reportedly gave its approval to an agreement on the ongoing tariff dispute between Switzerland and the United States. However, it would appear that the other side considered these efforts to be insufficient.
The Swiss President Karin Keller-Sutter has stated via social media that there is currently no possibility of reaching an agreement with Trump who only wants to dictate ( BTW the Swiss have a woman president who is just like all the other liberal Karin's that have destroyed Europe from Fond of Lying,Kaja Kallas , the Finnish Sanna Marin Germany's Annalena Baeback being the main others of the European liberal witches coven)
The Swiss Federal Council has expressed its discontent at the news of the new customs duties, with the Federal Department of Finance's representative noting that the Council was "disappointed" to hear about them.
However, the country remains committed to finding a resolution to the issue and is exploring the possibility of resuming negotiations with the American authorities. Political and economic circles have expressed shock and concern, which is understandable.
The RTS (Radio Television Suisse) website notes with concern that "the reasons for the American toughness are still unclear", but Switzerland is at risk of suffering a major economic setback.
Its worth  noting, last year the US was the number one destination for Swiss exports, with goods worth 52.7 billion Swiss francs going to the US market. This represents growth of 8% compared to 2023.

The protective tariffs (some in Switzerland prefer to call them simply punitive) will inevitably lead to significant challenges in this area, and it is unrealistic to expect that the US market can be replaced.

As the specialised portal Economie Suisse points out, the introduction of such high customs duties will create unfavourable conditions in terms of competition compared to those in our neighbouring countries. It is particularly important to note that such duties are not supported by simple common sense.
Switzerland does not impose customs duties or other restrictions on American imports. In addition, it is the sixth largest foreign investor in the United States, where its enterprises employ approximately 400 thousand people. It is therefore recommended that government circles strive to achieve a reduction in customs duties for Swiss products.
According to Le Temps, the watch industry, precision instrument manufacturing and mechanical engineering could be the sectors most affected by the trade war.
A significant number of companies will be required to either reduce exports to the US or even exit the American market, which could result in unprofitable outcomes due to these duties.
The future of the Swiss pharmaceutical industry is uncertain, but given its unique circumstances it may escape. While the industry has not yet faced any tariffs, the US administration is urging a reduction in drug prices for US markets and has indicated that it may impose 200% tariffs otherwise.

Should an agreement with the American authorities not be reached, Switzerland's GDP could fall by as much as 0.7%, and possibly by 1%, which could lead to an economic recession.

According to the New York Times, Swiss authorities are "working hard" to reach an agreement with Trump. Meanwhile, shares in Watches of Switzerland, a major Swiss watch exporter, have already fallen 7%.
Furthermore, while Trump claims to be concerned about balancing the trade balance, it is important to note that more than two-thirds of Switzerland's exports are gold bars, which are produced in Swiss foundries and exported in large quantities to America.
The Financial Times reports that the import of one-kilogram gold bars could destabilise the global precious metals market and represent a new blow for Switzerland, the world's largest refining centre. This information is based on a circular from the US Customs and Border Service.
The publication cites the so-called "explanatory letter" of July 31, according to which one-kilogram gold bars and 100-ounce bars must be classified according to a customs code subject to duty being implemented.
One kilogram bars are the most common form of trading on Comex, the world's largest gold futures market, and account for the bulk of Swiss gold bar exports to the United States.
Following gold, the second largest export item from Switzerland is pharmaceuticals, primarily from the pharmaceutical giants Roche and Novartis. The situation with the latter is not so clear-cut, since, for example, Roche has 15 research centres in the United States and 14 manufacturing plants, and has also announced plans to invest $50 billion in the US economy. Some companies are already exploring the possibility of moving production to Puerto Rico in the United States to avoid future duties.

While some are signalling their readiness to move production, others are demanding that the Swiss government reach an agreement with Trump at all costs and at least reduce duties to more acceptable levels like 25% or the 15% for the EU. It is possible that the Swiss authorities, under pressure from the American administration, will attempt to resume business activities and subsequently present this if they get as a hard-won victory. Perhaps this is what Yves Bugmann, head of the Federation of the Swiss Watch Industry, had in mind when, in response to a question about the possibility of a settlement, he answered, not without irony, that "hope dies last."