Switzerland is negotiating with the US after a surprise announcement of a 39% tariff on Swiss exports, set to take effect Thursday, according to Bloomberg. The Swiss government is working to address US concerns, particularly its trade surplus, and is exploring options like purchasing US liquefied natural gas. While the tariffs pose a risk to Switzerland’s economy, there is hope for a compromise, potentially reducing the tariff to 15%, in line with the EU’s deal. They write:
The Swiss government said it is determined to win over the US on trade after last week’s shock announcement of 39% tariffs on exports to America.
“Switzerland enters this new phase ready to present a more attractive offer, taking US concerns into account and seeking to ease the current tariff situation,” it said in a statement on Monday, highlighting its foreign direct investments and research and development push in the US. It also excluded countermeasures for the time being. […]
Switzerland ran a $38 billion bilateral trade surplus with the US last year, according to US Census data, which was the 13th biggest for the world’s largest economy. While Swiss exports to the US collapsed after the introduction of tariffs in April, they rebounded in June, suggesting that trade between the two countries remained robust.
There aren’t many routes available to Switzerland, but one is to offer to buy liquefied natural gas from the US. While the landlocked country is focused on hydroelectric and nuclear power, it does use a small amount of gas, primarily in the winter to cushion swings in its energy supply. Should Switzerland choose to import more gas, it would have to travel through neighboring countries, which could potentially increase transit costs. […]
Given the “volatility of decisions we’ve seen from the US,” there’s hope that a solution may be found, Franziska Ryser, a lawmaker of the Green party, told Bloomberg.
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