US Tariffs Hit Swiss Export Economy Hard
While pharmaceutical products, the key product of Swiss exports, are currently exempt, the US president Donald Trump has threatened to hike tariffs up to 250% if drug companies don not lower their drug prices, according to the report.
Swiss Jobs at Risk Across Key Export Sectors
The Swiss corporate union federation, Economiesuisse, warned that the impact could be severe, as per the report. The business umbrella organisation highlighted that, “If customs duties were to be levied on medicines, many jobs in the pharmaceutical industry would also be affected,” as quoted in the Swissinfo.ch report.
The federation estimated that nearly 20,000 jobs in electronics and watchmaking could be affected, along with about 14,200 in food and tobacco, and 13,900 in pharmaceuticals, as reported by Swissinfo.ch. But the actual number could be even higher since many more people work for suppliers and service providers connected to these industries, according to the report.
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Economiesuisse explained that, “In reality, exporting companies probably have more employees on average, which is why the actual number of people affected could be higher,” as quoted by Swissinfo.ch report.The Swiss corporate union organisation pointed out that, “the negative consequences of the competitive disadvantage represented by the US tariffs will not be limited to companies exporting to the United States”, but “will also affect suppliers to the Swiss export industry,” as quoted in the report.ALSO READ: As stock market nears a P/E ratio of 30 – should investors worry?
Swiss Government and Industry Scramble to Respond
The Swiss government is reportedly working with companies to find ways through these steep tariffs as it has expressed its determination to continue the dialogue with the United States, according to the report. Meanwhile, Economiesuisse is urging political leaders to “quickly and effectively lighten the administrative and regulatory burden on companies” and to “offset the competitive disadvantage on the US market by improving the framework conditions in Switzerland,” as quoted by Swissinfo.ch report.
FAQs
Why did the US impose tariffs on Swiss exports?
The US cited the trade deficit with Switzerland as the main reason for the 39% customs duty that took effect on August 7, as per the Swissinfo.ch report.
Which sectors are most at risk of loosing jobs?
Electronics and watchmaking (20,000 jobs), food and tobacco (14,200), and pharmaceuticals (13,900) are among the hardest-hit industries, as per the Swissinfo.ch report.
