Switzerland stunned by 39% tariff rate, seeks negotiated solution

Swiss manufacturers warned on Aug. 1 that tens of thousands of jobs were at risk after US President Donald Trump hit them with one of the highest tariff rates in his global trade reset, even if there was some relief for now for the key drugs sector.

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RUETLI, Switzerland —

The Swiss government said it was "disappointed" and would decide how to proceed after Mr. Trump set a 39 percent tariff on the export-reliant country — more than double the 15 percent rate for most European Union imports into the US.

The levy — up from an originally proposed 31 percent tariff that Swiss officials had described as "incomprehensible" — is a body blow for the small alpine nation, which counts the US as the top export market for its pharmaceuticals, watches, machinery and chocolates.

The White House said on Aug. 1 it had made the move because of what it called Switzerland's refusal to make "meaningful concessions" by dropping trade barriers.

"Switzerland, being one of the wealthiest, highest-income countries on earth, cannot expect the United States to tolerate a one-sided trade relationship," a White House official said.

Swiss President Karin Keller-Sutter earlier told Reuters that the government would keep talking to Washington, but there were only limited concessions it could offer, as US imports already enjoyed 99.3 percent free market access.

"We have companies that have made very important direct investments (in the US). It's really difficult to give more," she said on the sidelines of a Swiss National Day event in Ruetli.

Ms. Keller-Sutter said the government was disappointed, with the 39 percent tariff "much higher" than what had been negotiated following "very constructive talks" with Washington in July.