'Swiss stunned by US tariff hike, seek negotiated solution'

 Swiss manufacturers warned on Friday that tens of thousands of jobs were at risk after U.S. President Donald Trump hit them with one of the highest tariff rates in his global trade reset, even if there was some relief for the key drugs sector.

The government said it would decide how to proceed after Trump set a 39% tariff on the export-reliant country - more than double the 15% rate for most European Union imports into the United States. 

The levy - up from an originally proposed 31% tariff that Swiss officials had described as "incomprehensible" - is a body blow for the small Alpine nation, which counts the U.S. as the top export market for its watches, jewellery and chocolate

"It’s a massive shock for the export industry and for the whole country. We are really stunned," said Jean-Philippe Kohl, deputy director of Swissmem, representing the mechanical and electrical engineering industries.

SWISS SAY TRUMP TARIFF IS ARBITRARY

"The tariffs are not based on any rational basis and are totally arbitrary ... This tariff will hit Swiss industry very hard, especially as our competitors in the European Union, Britain and Japan have much lower tariffs."

The government said it remained in contact with U.S. authorities about the tariffs and "continues to strive for a negotiated solution".

The new rate is set to take effect on August 7, and a Swiss source familiar with the matter said negotiations would continue.

"We are not discouraged and continue to strive for an agreement in the interests of both sides," Foreign Minister Ignazio Cassis told a Swiss National Day event in Gersau.

Swissmechanic, which represents small- and medium-sized companies, said the new rate threatened Switzerland's future as a business location.

However, there was some respite for the pharmaceuticals sector, which includes industry giants Roche and Novartis, as they were not included in the 39% rate.

"Swiss authorities understand that the tariffs should not include the pharmaceuticals sector," a spokesperson for the Economy Ministry said.

Still, the sector is under pressure from Washington to lower prices.

SWISS BELIEVED FRAMEWORK HAD BEEN LINED UP

"It is crucial that Switzerland continue negotiations with the U.S. to reduce general tariffs and prevent specific tariffs on pharmaceutical products," said the industry association Interpharma.

Trump's announcement differs significantly from a joint draft statement approved by the Swiss government on July 4 after intensive talks with the U.S., the finance ministry said in a statement, without giving details.

Swiss officials have been waiting since then for a sign-off on what was understood to be a preliminary framework for a deal, according to a person familiar with the matter.

Finance Minister Karin Keller-Sutter and Economy Minister Guy Parmelin had visited Washington to press their case; Switzerland is the seventh-largest investor in the United States. It says its direct investments of over $300 billion support half a million U.S. jobs.

It sent about 65 billion Swiss francs ($80 billion) of goods to the United States last year, or about one-sixth of its total exports, giving it a goods trade surplus with the U.S. of almost 38.7 billion francs. In services, it had a deficit of nearly 20.4 billion francs, however.The U.S. is notably Switzerland's top foreign watch market, accounting for 16.8% of exports, worth 4.4 billion francs, according to the industry federation.

https://www.msn.com/en-us/money/markets/swiss-stunned-by-us-tariff-hike-seek-negotiated-solution/ar-AA1JIITq