Confusion and anger in Switzerland

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

On the world scale, the fourth largest, for only Syria, Laos and Myanmar (though, when President Trump comes through his 50% tariff threat, then Brazil jumps into the top of the list).

This is one story that dominates the news and esters on Friday. One newspaper, Blik, called it the largest defeat of the country after the victory of France in the Battle of Marinian in 1515.

Just a few weeks ago, the Switzerland government radiated confidence.

In May, a Swiss meeting between the United States and China in Geneva aimed at preventing a trade war between two economic superpowers, allowed Switzerland President Karin Keller-Sitter to capture the meeting with US trading Secretary Scott.

She smiled. She said she said that Switzerland was likely to be the second on the UK list to conclude a trade agreement with Washington. 10%, she hinted, was a tempting tariff, much lower than 31% Trump, which presented to Switzerland on Liberation Day in April.

Now these illusions are destroyed. Just a few hours before the first term of August, the last phone call between Mrs. Keller Sumter and President Trump was given nothing. A few hours later, the news appeared that the tariffs would not be 31%, as initially threatened, and by 39%.

Why? Some Swiss politicians have already claimed that Switzerland’s talks were not up to zero – but some say that too harsh, others say, too burdened. The reality may be simpler: Trump wanted to make great deals, and Switzerland is just not that big. Now it is not even clear that many discussions that the Swiss negotiators were able to have with their colleagues in the United States.

Shows that the Switzerland government is a trade deficit that it has from the US.

Trump sees trading deficit – when the country sells more than the US than it buys – as a matter of its essence, this is an opinion that is not extended by economists. He believes that tariffs can help protect the US production sector, which has lost work abroad for decades.

The Swiss trade deficit in the United States amounted to $ 47.4 billion in 2024, although, if you include, Trump is conveniently ignored, the deficit is reduced to $ 22 billion. Switzerland sells more (primarily in pharmaceuticals, gold ornaments, hours and machines) in the US than it buys.

To try to compensate for this, the Swiss government reduced its own tariffs for industrial good to zero, and several Swiss companies (Nestle, Novartis) promised multi -billion dollar investments in US factories. Switzerland is already the 6th largest investor in the world, creating a Swiss, say, 400,000 jobs in the US.

But the balance of the deficit looks impossible. Switzerland is only 9 million, and many of them do not want to buy US products. Gas gas cars are too large for alpine roads, American cheese and chocolate … Well, let’s say they are not really a Swiss taste.

Jan Attesciend, head of foreign trade in the economy representing the enterprises, said Swiss broadcaster: “We need a reliable relationship with the United States.”

This can be a signal of disappointment that one of Switzerland’s most important export markets has adopted a policy of inclusion/off, depriving the Swiss business of certainty it needs.

So what can Switzerland do now? By August 7, there is a slight opportunity if the tariffs should take effect. By then, the Swiss government will try to negotiate. Swiss companies warn about thousands of losses when 39% cannot be reduced.

But it’s hard to understand what a room is.

With the promises of investment and zero tariffs, Switzerland has already offered everything that could. The only tactic will now be punitive – to withdraw the investment proposal, the introduction of mutual tariffs and, the nuclear version, to cancel the order of Switzerland for US aircraft F35.

In Switzerland there is confusion – and anger.

Friday is a Swiss National Day, the equivalent of July 4. After giving a traditional speech, Switzerland President Karin Keller was asked about US tariffs.

She told reporters that negotiations with the US had been well, but for Donald Trump, trade deficit was an obstacle. The conclusion was that the US problem became a problem.

Instead of ordinary patriotic festivities, many Swiss believe that they are punished for having one of the most competitive and innovative countries in the world.

Others say the country has survived economic shocks before and will be able to use this innovation to survive this one.