Parmelin: existing tariff exemptions for Swiss pharma to remain

Parmelin: existing tariff exemptions for Swiss pharma to remain

Swiss Economics Minister Guy Parmelin has confirmed that existing tariff exemptions for Swiss pharmaceutical exports will remain in place, despite the recent 39% tariff imposed by the U.S. on Swiss imports. This announcement comes as Switzerland continues to negotiate with the U.S. to mitigate the impact of the new tariffs.

Minister Parmelin stated that the government is committed to understanding the U.S. president's concerns and reworking its offer to the U.S. to demonstrate goodwill. He emphasized that the Swiss economy could face significant challenges due to the tariffs, potentially impacting its competitive edge in comparison to the EU and the UK. The government is also in constant contact with representatives of the pharmaceutical sector, aiming to intensify negotiations in the coming days.

The Swiss government is exploring various options to counter the tariffs, including the possible purchase of liquefied natural gas from the U.S. and making further investments in the country. However, Minister Parmelin admitted that these options are still under consideration, and the government needs to understand exactly what Washington expects before proceeding.

The 39% tariffs are estimated to affect nearly 60% of Swiss exports to the U.S., its largest market. This could leave Swiss industries such as watches, chocolate, and machinery vulnerable. An economist at the ETH University in Zurich, Hans Gerbach, estimates that the tariffs could reduce Switzerland's GDP by between 0.3% and 0.6%.

The Swiss government has stated that it is entering the next phase of negotiations, ready to take U.S. concerns into account. However, it has not disclosed details about its offer or any potential countermeasures. The Swiss president, Karin Keller-Sutter, is also set to meet with U.S. Secretary of State Marco Rubio in Washington to discuss the tariffs.

References:
[1] https://www.swissinfo.ch/eng/trade-policy/parmelin-svizzera-verso-unofferta-agli-stati-uniti/89776448
[2] https://www.cryptopolitan.com/swiss-president-flies-to-the-u-s-over-tariff/