U.S. Imposes 39% Tariff on Swiss Imports, Effective August 1

The President of the United States has signed an executive order imposing a 39% tariff on imports from Switzerland. This tariff, which is higher than the 31% initially threatened in April, will take effect on August 1. The move comes as a response to Switzerland and other countries failing to reach a trade framework agreement with the U.S. This decision is part of a broader strategy to adjust tariffs on various countries and regions, with rates ranging from 10% to 41%.

This tariff increase is part of a broader strategy to pressure countries and industries to relocate manufacturing back to the U.S. and reduce global trade imbalances. Last year, the U.S. had a trade deficit of 380 billion dollars with Switzerland, which is slightly lower than the top ten trade deficit countries. Switzerland has been an important player in international negotiations and had hoped to be one of the first to reach an agreement.

The impact of the additional tariffs threatened on the pharmaceutical industry remains unclear. The Swiss economy relies heavily on contributions from industry giants such as Novartis and Roche. The U.S. has also indicated that it may impose additional tariffs on countries that have not reached trade agreements, including China Taiwan, Lesotho, and Switzerland. These measures are part of a broader effort to address the significant and persistent trade deficits faced by the U.S.

This tariff increase is part of a broader strategy to pressure countries and industries to relocate manufacturing back to the U.S. and reduce global trade imbalances. The U.S. has already imposed a 50% tariff on Brazilian goods and removed the tax exemption for low-value imports. The U.S. has also targeted copper products with additional tariffs. The U.S. has taken similar actions against other countries. For example, starting from August 1, a 50% tariff has been imposed on imported semi-finished copper and its derivatives, excluding copper input materials and scrap. Concurrently, a 25% tariff has been applied to goods imported from India, with a warning that further penalties may be imposed if India continues to purchase energy from Russia.

Starting from August 29, imports valued at less than $800 will no longer be exempt from tariffs, a move that is expected to increase costs for U.S. consumers and small businesses. The U.S. has also announced that it will impose a 25% tariff on goods exported from India to the U.S. starting from Friday, with the threat of further penalties if India continues to purchase energy from Russia. The U.S. has also indicated that it may impose additional tariffs on countries that have not reached trade agreements, including China Taiwan, Lesotho, and Switzerland. These measures are part of a broader effort to address the significant and persistent trade deficits faced by the U.S.