Confusion and anger in Switzerland - hit by highest tariffs in Europe

[muriel_volestrangler]

39%? For Switzerland, this is a huge shock, and worse than the worst-case scenario – these are the highest tariffs in Europe.

Globally, the fourth highest, behind only Syria, Laos, and Myanmar, (although if President Trump follows through on his 50% tariff threat then Brazil will jump to the top of the list).
...
She came out smiling. She had been told, she said, that Switzerland was likely to be second on the list after the United Kingdom to strike a trade deal with Washington. 10%, she hinted, was the tempting tariff offer, far lower than the 31% Donald Trump had unveiled for Switzerland on his 'liberation day' in April.
...
The Swiss trade deficit with the US was $47.4 billion in 2024, though if service industries are included, which Trump conveniently ignored, the deficit shrinks to $22 billion. Switzerland sells more (primarily in pharmaceuticals, gold jewellery, watches and machine tools) to the US than it buys.

To try to compensate for that, the Swiss government reduced its own tariffs on US industrial good to zero, and multiple Swiss companies (Nestle, Novartis) promised multibillion dollar investments in US plants. Switzerland is already the world's 6th largest investor in the US, creating, the Swiss say, 400,000 US jobs.

https://www.bbc.co.uk/news/articles/c987l633zdgo

Ms. Keller-Sutter said that for Mr. Trump, the U.S. trade deficit with Switzerland was “a key issue” behind the tariff rate. But over half of Switzerland’s trade gap with the United States comes from gold bouillon [sic] and bars refined in Swiss foundries and exported in large quantities to America. The Swiss central bank has suggested gold shouldn’t be counted in the trade balance sheet. Gold imports are exempt from Mr. Trump’s tariffs.

https://archive.ph/QWSm4 (New York Times archive link)

(Has the NYT got its cooking team writing the trade articles now???)

Yes, if gold bullion and bars are exempt from the tariffs (because no way is Trump going to charge his gold-buying buddies 39%), then they shouldn't be counted in the deficit calculation. Though of course the "tariffs will continue until the deficit disappears" idea is BS anyway. Notice how Switzerland has kowtowed to Trump, and still gets a shit sandwich. Because Trump is crap at really doing deals, let alone negotiations that are mutually beneficial - you know, "reciprocal".