Confusion and anger in Switzerland

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

Globally, the fourth highest, behind only Syria, Laos and Myanmar (though, if President Trump follows his 50% tariff threat, then Brazil will jump to the top of the list).

This is a story that dominates the news and broadcast on Friday. A newspaper, Blik, described it as the largest defeat in the country after the victory of the French in the battle of Marinano in 1515.

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

In May, a Swiss meeting between the US and China in Geneva aimed at preventing a trade war between the two economic superpowers allowed Switzerland President Karin Keller-Suter to end a meeting with US Minister of Trade Scott Bensten.

She came out smiling. They told her, she told that Switzerland would probably be second on the list after the United Kingdom to reach a trade deal with Washington. 10%, she hinted, was the tempting offer of tariffs, far more than 31% of Donald Trump, revealed to Switzerland at Liberation Day in April.

Now these illusions are broken. Just hours before the first deadline for August, one last phone call between Mrs. Keller-Suter and President Trump gave nothing. Hours later, the news came that the tariffs would not be 31%, as they were initially threatened and a penalty 39%.

Why? Some Swiss politicians already claim that the tactics of negotiations in Switzerland have not been a scratch – but some say too difficult, others say too disgusting. The reality may be more clear: Trump was eager to make big deals, and Switzerland is just not that big. It is not even clear now many discussions that the Swiss trade negotiators have managed to take with their colleagues in the United States.

The squeezing point, says the Switzerland government now, is the trade deficit it has with the United States.

Trump sees commercial deficits – when a country sells more to the United States than it buy – as it is inherently a problem for the United States, although it is a view that is not widely shared by economists. He believes that tariffs can help protect the US production sector, which has been losing the work of companies abroad for decades.

Swiss trade deficits with the US was $ 47.4 billion in 2024, although if the service industries are included, Trump is conveniently ignored, the deficit shrinks to $ 22 billion. Switzerland sells more (mainly in Pharmaceuticals, gold jewelry, watches and machine tools) of the United States than it buy.

To try to compensate for this, the Swiss government has reduced its own tariffs for the industrial good in the United States to zero, and numerous Swiss companies (Nestle, Novartis) have promised multi -billion -dollar investments in US power plants. Switzerland is now the sixth largest investor in the world in the United States, creating, Switzerland, 400,000 jobs in the United States.

But balancing the deficit seems impossible. The population of Switzerland is only 9 million and, frankly, many do not want to buy us products. Gas cars are too big for alpine roads, American cheese and chocolate … Well, let’s just say that they are not really in Swiss taste.

Jan Athellander, head of foreign trade at Economiesuisse, who is a business, told Swiss Broadcasting: “We need reliable relations with the United States.”

This may be a signal of dissatisfaction that one of the most important export markets in Switzerland has adopted a policy of inclusion/exclusion, supplying the Swiss business for sure it needs.

So, what can Switzerland do now? There is a small window of capabilities until August 7, when tariffs have to come into force. Until then, the Swiss government will try to negotiate frantically. The Swiss business warns of thousands of job losses if 39% cannot be reduced.

But it’s hard to see what Wiggle’s room is.

With the promises of investment and zero tariffs, Switzerland had already offered everything she could. The only tactic would now be criminal – withdraw the investment offer, enter reciprocal tariffs and, the nuclear option, cancel Switzerland’s order for US f35 fighter jets.

There is confusion in Switzerland – and anger.

Friday is the Swiss national day, the equivalent of July 4. After exposing his traditional speech, Swiss President Karin Keller-Suter was asked about the US tariffs.

She told reporters that conversations with the United States have evolved well, but that for Donald Trump, the trade deficit is the obstacle. The conclusion was that the US President was the problem.

Instead of the usual patriotic celebrations, many Swiss believe that they have been punished for having one of the most competitive and innovative countries in the world.

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