Switzerland and the U.S.: Strong Partners Amid Change Switzerland faces challenges from escalating trade tensions. Rising costs and supply chain adjustments are inevitable. However, the U.S. is undergoing a transformation—reducing bureaucracy, keeping energy costs low, cutting taxes, and investing in technology, space, defense, and AI. Switzerland, as a European leader in these sectors, is well- positioned to benefit.
The Power of Tariffs The U.S. market is the largest in the world and the only major one that is growing. President Trump is leveraging access to this largest single market to achieve policy objectives. That’s what the tariffs are all about. In his first three weeks in office, President Trump signed more than 90 executive orders. Just one day after his inauguration, he signed the “America First Trade Policy” Executive Order, which requires several reports to be submitted to him by April 1, 2025. These reports include assessments of issues such as illegal migration and fentanyl flows from Canada, Mexico, and China, as well as the impact of the USMCA on American workers. The order also calls for a review of the causes of the country’s trade deficit and includes a study on currency manipulation. Although it seems chaotic from the outside, President Trump’s tariffs have clear policy objectives, i.e.: i.) Curb the migration and fentanyl flow into the United States (Canada, Mexico and China).
Source: NZZ, October 2024. “The cost of sanctions.” Switzerland is the 6th largest foreign direct investor in the U.S. and the number one in R&D. Swiss firms in the U.S. pay the highest average salaries among foreign investors ($131,100) and employ over half a million people across 4,000 locations. Bilateral trade is balanced, with the U.S. enjoying a substantial surplus in exporting services to Switzerland (think Microsoft, Google, etc.) and Switzerland with a similar surplus in goods (think machinery, pharmaceuticals, watches). Switzerland has abolished import duties on industrial goods, so 99% of all U.S. exports enter Switzerland duty free. The trade weighted average tariff for Swiss products to the U.S. lies at 2.2 % and vice versa at 1.7%. By maintaining this strong relationship, Switzerland is poised to flourish in the years to come.
Be transformative. Put the customer at the core of your business.
Learn more at pwc.ch/customer
Made with FlippingBook - PDF hosting