Federal Government emergency meeting, consultations with companies, the Swiss authorities resulted in the fight to try to find a response to Donald Trump’s threat to gather 39% of the tasks of punitive customs to the products of the small alpine country.
The Swiss government must meet this Monday, August 4 in videoconference for an extraordinary session, according to the Federal Chamber. The State Secretariat for the economy also spoke with several representatives of the Swiss economy, said, without revealing the content of the discussions.
The Government has also announced that it wanted to continue negotiations with the United States on customs tasks, “if necessary beyond August 7”, approaching this new phase of discussions “with the desire to present a more attractive offer.” The Swiss government is “determined to continue discussions and negotiations”, taking into account the concerns of the United States, “said the executive in a statement after a crisis meeting.
39% surcharge instead of 31% planned
Switzerland is launched by the decision of the US administration, which indicated customs tariffs of Swiss products imported to the United States to 39% from August 7, against 31% initially announced in early April.
The decision made the alpine country that had immediately chosen the negotiations with the United States after this Donald Trump called the “Day of Liberation” (day of liberation) in early April.
According to Karin Keller-Sutter, president of the Confederation, US President Donald Trump has the impression that Switzerland “steals” the United States in view of a commercial deficit of almost 40 billion Swiss francs (42.8 billion euros). The Federal Council (Government), which says that it has learned with great regret of this surcharge in 39%, hopes to be able to use the few days of respite before the deadline of August 7 to negotiate concessions.
At Monday’s opening, the Swiss scholarship accused the blow, losing 2% in the first exchanges, before gradually capturing their losses. At 11:14 GMT, the SMI, the reference index of the Swiss Stock Exchange, lost 0.65% to 11,759.03 points, however, a certain feverish within the high values of the index that evolve in an erratic way.
A threat to the profits of Swiss companies
This surcharge, much higher than 15% imposed on competitors based in the European Union, is an important problem for the Swiss economy, the great unknown being the treatment reserved for pharmaceutical products, which represent “more than half” of Switzerland exports, Hans Gersbach recalled.
According to this economy professor, the deputy director of the Center for Conditional Research Center of Zurich, these customs duties of 39% could cost between 0.3% and 0.6% annual growth in Switzerland, but the impact on the gross domestic product could rise to “at least 0.7%”, according to the destination of pharmaceutical products, until now exempt from the rights of the rights of the rights of the rights of the rights of The rights of customs.
The US president also seeks pressure on large pharmaceutical groups to reduce the price of medicines, which adds an additional stranger.
In a market note, Vontobel analysts emphasize that these 39% receive certain sectors, such as watchmaking, since the watches are manufactured in Switzerland, or part of the machine manufacturers.
According to them, there is “there is hope that an agreement can be concluded” and bring customs tasks to a level “closer to 15%” applied to other countries. “However, if these customs rights of 39% remain in force”, the benefits of companies in these sectors could be “substantially affected,” they warn.
“A blow” for Swiss chocolate manufacturers
Chocosuisse, the organization of employer chocolate manufacturers, these customs tasks of 39% are “a blow” that runs the risk that Swiss products decrease on the shelves in the United States and that those who remain “see their price increase.” The organization of this employers asked the Government to “do not release the song” and that “pursues negotiations.”
Among the negotiation levers, Sunday’s press mentioned the gold trade, which has the effect of inflating Switzerland’s commercial surplus against the United States. Switzerland is home to many refineries, where bruises melt for most of the United Kingdom to redesign them to US standards.
Therefore, these gold exchanges lead to a statistical distortion in commerce, according to the newsy Songzeitung, which suggests remembering that they give the impression that Switzerland exports more to the United States than it really does.
Source: BFM TV
