Swiss Exports Threatened as Trump Imposes 39% Tariff
Switzerland faces a 39% tariff on its exports to the U.S., threatening its export-driven economy and possibly causing significant job losses. The Swiss government is in talks to revise its trade relationship with the U.S., amid economic disruptions and declining stock market performances.
Switzerland is bracing for economic upheaval as the U.S. imposes a punitive 39% tariff on its exports, following President Donald Trump's trade rebalance strategy. The Swiss government is holding an emergency meeting to explore responses and potential negotiations with the U.S., as thousands of jobs may be at stake.
The tariff, effective Thursday, comes after Switzerland's refusal to concede to U.S. demands to open its market further. The new rate marks a significant hike from a previously suggested 31% tariff, which Swiss officials had already deemed "incomprehensible." Swiss leaders are considering various economic adjustments to mitigate the impact.
Economist Hans Gersbach warns that the tariff could shrink Switzerland's GDP by up to 1%, particularly if critical sectors like pharmaceuticals become impacted. Market reactions include Swiss blue-chip stocks hitting lows, with significant drops in shares of major companies like Richemont and Swatch. Meanwhile, the Swiss franc weakens against the dollar.
(With inputs from agencies.)
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