Switzerland Faces Trade Tensions: Trump's Tariff Proposals Stir Concerns

Switzerland is worried about U.S. President-elect Donald Trump's plans to impose higher tariffs, which could damage its export-driven economy. Its biggest market, the U.S., is targeted for increased tariffs, prompting Swiss authorities to consider responses and seek dialogue with international counterparts.

Switzerland expressed concern on Tuesday over U.S. President-elect Donald Trump's tariff plans, announcing potential countermeasures if his administration implements them. Trump's strategy aims to escalate trade tensions with a proposed 10% tariff on all imports and even higher taxes on goods from China.

The Swiss economy, heavily reliant on exports to the U.S., could suffer if Trump's plans proceed, industry experts suggest. Customs data reveals that approximately 20% of Swiss exports are directed to the United States, making it a far more significant market than Germany, China, or France. The Swiss State Secretariat for Economic Affairs (SECO) has voiced opposition, labeling the tariff plans as contradictory to vital international trading norms.

SECO is considering pragmatic responses, although remains tight-lipped on specifics. While the U.S. maintains low tariffs on industrial imports, Swiss exports could be disadvantaged if tariffs increase. Although European experts highlight the dangers of heightened trade barriers, many governments opt for a cautious stance on Trump's proposals. Economists predict Swiss economic output could shrink by 1% under severe tariff escalations, impacting industries like pharmaceuticals and precision instruments.

(With inputs from agencies.)