Tariffs USA

Trump’s tariff decision is putting the whole world under pressure (even the USA itself). What could be good about the “hammer”? We are finally getting a wake-up call in Europe. 

The news could be published every day. The super disaster is the high level of US debt in China and many other industrialized nations such as Japan, Switzerland and the UK. Does he know that? By withdrawing from the WHO and the Paris climate summit, he is plunging thousands into unemployment and our next generation into unsolvable conflicts such as global warming etc.. He is now touching what he will never have to take responsibility for.

Swiss President Karin Keller-Sutter and Economics Minister Guy Parmelin also want to use the spring meeting of the IMF and the World Bank in Washington for bilateral meetings on the new tariffs. Nobody knows how much can be expected and for how long. The Federal Council is expected to take an active and decisive stance and engage in dialog with the USA. The major Swiss players want to save the market with billions in investments and anchor production facilities in the USA locally, which will further weaken SMEs and Swiss production on a massive scale. Switzerland exports a fifth of its goods to the USA. For the time being, the pharmaceutical industry remains almost duty-free at 10% (with reference to the collapse of the USD on the stock exchange). There is a danger that Novartis, Ypsomed and Roche will hire managers from Pfizer Inc, an American multinational pharmaceutical and biotech company in New York. Then the USA will no longer need Lifesciences Switzerland. 

Switzerland has abolished industrial tariffs. They are as high as the bureaucratic effort. Even Musk would be on our line here. The new, horrendous US punitive tariffs have been temporarily suspended, but could be re-implemented at any time. Castles in the air. Fear. The concerns of SMEs and employees are well-founded. Many are tending towards hope or: 

First option: short-time working compensation – extend after three months. 

Second option: streamline processes and costs. Unemployment increases.

Third option: Act instead of react. New markets and products. 

Conclusion: After China’s slump in exports of Swiss goods, the consequences are now coming: the most important market, the USA, can no longer compensate for our lost exports to the EU and the Far East. We urgently recommend immediate measures when concluding a sales contract. Only the following clauses according to the Paris Chamber of Commerce 2020 are still possible:

1. CPT, Carriage paid to Airport/Port w/o Duty+Tax

2. CIP, Carriage Insurance Paid to Airport/Port w/o Duty+Tax

3. CFR, Cost and Freight to Airport/Port w/o Duty+Tax

4. CIF, Cost, Insurance and Freight to Airport/Port w/o Duty+Tax