Background

Following a decision by the Trump administration to establish effective Aug. 7 a reciprocal tariff rate of 39 percent on covered imports from Switzerland, Switzerland’s Federal Council announced that it would continue negotiations with the U.S. beyond the current joint statement proposal, and if necessary beyond Aug. 7, in an effort to reach a bilateral trade deal. The Federal Council indicated that during this new phase Switzerland is ready to present a “more attractive offer, taking U.S. concerns into account and seeking to ease the current tariff situation.”

While many Swiss products, such as pharmaceuticals, are exempt from the reciprocal tariffs, the Federal Council noted that nearly 60 percent of total Swiss exports to the U.S. will be subject to the 39 percent reciprocal tariff from Aug. 7, putting Switzerland at a “distinct disadvantage compared with other trading partners with similar economic profiles”, including the European Union, the United Kingdom, and Japan. The Federal Council also said that it is not currently considering any countermeasures against the U.S.

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