Switzerland finds itself in a challenging trade dispute with the United States, following the announcement of a 39% tariff on Swiss exports. This drastic move by the US has left Switzerland scrambling to formulate a response. The Swiss government has convened an emergency meeting, aiming to present an even more attractive offer to President Donald Trump in hopes of reversing the tariff decision. This unexpected development poses significant implications for the relationship between the two countries.
The tariff threat has already prompted reactions within Switzerland's business sector. Emmi, the country's largest dairy producer, is preemptively raising Gruyère prices in anticipation of the new duties impacting their US market operations. The broader economic consequences could be significant, with experts predicting a potential 0.7% drop in Switzerland's GDP.
In parallel, Germany's Finance Minister Lars Klingbeil is seeking exceptions for the German steel industry amid concerns over similar US tariffs. Klingbeil's visit to Washington aims to negotiate a quota arrangement that could alleviate the impact on German steel exports. He has expressed dissatisfaction with the EU's trade negotiations and is advocating for measures that protect independent institutions and support free trade.
