AI Diffusion Rule In January 2025, the Biden administration announced that, starting in May, it would impose restrictions on the export of advanced AI chips. The Rule divided countries into different categories, with 18 "trusted countries" having unrestricted access to this technology in the future. Switzerland is not amongst those 18 countries, limiting access. No basis has been given for the categorization. Currently, it is unclear how the Trump Administration will handle Biden’s AI Diffusion Rule. Restricted access could severely impact Swiss and U.S. companies in Switzerland, particularly in AI research and development. Institutions like ETH Zurich and EPFL rely on these chips, and any limitations threaten innovation and technological collaboration. There are still many uncertainties surrounding the rules as they are complex and currently in a comment period. There are also many exception rulings that may be applied to Switzerland. The current comment period is therefore an opportunity.
ii.) Ensure a domestic manufacturing base for goods considered “national security” in case of a war, pandemic, or other crisis (chips, steel and aluminum, certain medicines, etc.). iii.) Stop countries from demanding higher import duties for U.S. products than vice versa (“fair and reciprocal”). iv.) Boost jobs and investments in the U.S. and v.) Generate revenue.
While some countries, like Switzerland, are highly dependent on export (75% of GDP), the U.S. has more leverage due to its relatively lower dependence on international trade (12% of GDP) since it is home to the world’s largest domestic market. It is clear that tariffs increase global economic uncertainty and the cost of doing business. Also, they could act inflationary in the short run – one of President Trump’s key campaign concerns. The ultimate impact remains uncertain, as some tariffs may be negotiation tools rather than permanent measures and – generally - tariffs are economically inefficient tools. Source: The Economist, January 2025. “Do tariffs raise inflation?”
Source: AI Whitepaper - Greater Zurich Area, September 2024.
CSRD in focus Navigating the new reporting standards The EU’s Corporate Sustainability Reporting Directive (CSRD) significantly increases Swiss companies’ non-financial reporting requirements. It is more than just a mandatory exercise and offers an opportunity to transform your company sustainably for the future. We’re here to accompany you each step of the way. Scan the code to find out more Deloitte.com/ch/CSRD
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