Switzerland seeks 'constructive solution' after 'punishment'
Customs duties "could have extremely serious consequences for growth," according to Guy Parmelin.
With a 39% tariff rate imposed by the United States, Switzerland faces one of the highest tariffs in the world. Guy Parmelin assured on Saturday that the Federal Council remains in constant contact with Washington, despite the absence of a formal meeting since the announcement. "To have a meeting, we need to understand exactly what it's about, what the problem was. Once we have this on the table, we can decide what to do next," explained the head of the Department of Economic Affairs on the RTS program Forum.
The Vaudois stressed Switzerland's willingness to continue negotiations with Washington, stressing the importance of first understanding the precise motivations behind the American decision before defining the next steps.
"We had no indication that it would end this way, and especially that we would be subjected to such punishment," he acknowledged. Without revealing the details of the Swiss strategy, the head of the Department of Economic Affairs recalled that diplomatic relations with the United States were maintained both before and after the announcement of these trade sanctions.
Guy Parmelin stated that Switzerland would do "everything possible to rework its offer and demonstrate its goodwill," although a deadline of August 7 seems difficult to meet. He mentioned avenues such as importing liquefied gas or new investments.
The Federal Councilor, however, ruled out any threatening strategy, preferring to try to preserve the country's economic and social interests. "The role of the Federal Council is to find a constructive solution." Regarding the possible consequences, he warned that these customs duties "could have extremely serious consequences for growth," and did not rule out resorting to partial unemployment as a possible support for affected businesses .
The head of the Department of Economic Affairs was cautious, but not pessimistic, about the possibility of resuming dialogue with Donald Trump, even though the latter deemed the previous agreement too unbalanced. "I believe that in any negotiation, there are times when it works, times when it doesn't," he admitted, stating that the Federal Council had perhaps been "too optimistic."
The 39% tariffs imposed by the Trump administration on Switzerland are based on a supposed $40 billion trade imbalance in Switzerland's favor. However, a closer analysis reveals a much more nuanced reality. A significant portion of this Swiss trade surplus comes from gold exports. Switzerland, as a global center for gold trading and refining, exports this precious metal massively to the United States, not for consumption but as a safe haven in times of uncertainty, uncertainty often exacerbated by Trump's own policies. These exports, while substantial, generate little added value in Switzerland. Moreover, the statistics only take into account trade in goods, without considering services, where the United States records a net surplus, particularly via software, cloud computing, or R&D.
The economist Johannes von Mandach.
According to Johannes von Mandach, an economist at Wellershoff & Partners, interviewed by 20 Minuten , gold significantly distorts foreign trade figures and should be treated separately. Furthermore, Donald Trump is also ignoring capital flows: Switzerland invests heavily in the United States through direct or financial investments. These omitted elements suggest that US trade policy is not based on a comprehensive reading of economic data, but rather on a strategic desire to create a balance of power. As von Mandach points out, "This is most likely a political calculation: focusing solely on trade in goods paints a more alarming picture and thus increases pressure."
20 Minutes
