Why is a unique struggle to Switzerland

Switzerland is screaming to make a trade agreement with Washington after hitting a%or at a rate of goods imported in the United States.

AUG executed on August. To avoid this major duty, Swiss leaders traveled to Washington DC this week to deal with the US administration.

As one of the latest confusion of US President Donald Trump’s new duty is a 39% rate. Wonder The trade agreement appeared in the European country.

Trump told CNBC on Tuesday that Swiss president Karin Keller-Sutar, “Don’t want to hear” his concerns about the US trade deficit with Switzerland. Swiss government after the announcement of 39% rate Said During the “deep” discussion, Switzerland had maintained a highly creative role from the beginning.

The United States recorded a trade deficit of $ 38.3 billion with Switzerland and recorded an additional $ 9.7 billion in the service sector last year. Office of the United States Trade Representative??

Swiss inflation is also a very low level of time ago, even even Turning negatively at the beginning of this year?? In July, the consumer price index reached 0.2% compared to the same month of one year.

As long as pharmaceutical products – Swiss exports – are not affecting rates, the impact on economic growth can be limited, Capital Economics Europe European Economist Adrian Pratohon told CNBC.

“We estimate that the current rate rate is%=%, but due to the exemption for pharmaceutical products, GDP will be reduced by about 6.6 percent in the middle period. This is important, but it is not a disaster, but it is just three months of financial growth,” he explained.

However, Trump told CNBC in an interview on Tuesday that the sector-specific rate on the pharmacuticles Can be up to 250% more In the next 18 months.

Switzerland will be a major blow to the US duties on Pharma imports, the leading center of the Global Pharmaceutical Industry. In 2023Life Sciences Sector contributed 38.5% in Swiss export.

Sector-specific duties will have a total impact of US rates on Switzerland’s GDP and more than 1% and possibly 2%, Pritjohon said.

Torston Sotter, head of the Swiss equity research in Capeler Chewarex, said in a letter on Monday, “Pharma is the most important export for Switzerland.” “Here, Switzerland has taken advantage of the US Pharma Reliance, but it should be carefully run – a mystep can increase the destructive 39% destructive area of 39% on its most valuable area.”

From the beginning of the year, the currency – is generally seen as a safe shelter in terms of uncertainty or market unrest – the US dollar has increased by about 11%. Its Value of growth Weighs on inflation by motivating Swiss National Bank Reduce its main interest rate to 0% In June.

On Monday, a Sateter of Capeler Cheverx said that Swiss exporters are now suffering from a “triple shock.”

“Tall rates… () Compared to the neighboring countries, the weak USD/CHF currency will come up above the currency and competitive inconvenience,” he explained.

Recently the European Union Contracted with the Trump administration Accordingly, the US will apply 15% on goods for block exports – lower rates than Switzerland’s faces.

The G10FX batsman Kamal Sharma in the Bank of America told CNBC on Wednesday that Trump’s trade policies were putting the Swiss National Bank in a “very, very difficult situation”.

He said, “I think the big issue is that from the point of view of the rate, the market is now getting a little more worried, because the negative (rates) are always on the horizon,” he said. “There is a worry that if the US-Swiss trade deal remains as it is, it means that it will press the SNB to further convenient action.”

Sharma said that the previous negative rate has been very low to increase inflation and weaken variables and there is no possibility of rise.

“The more direct response to the SNB is that, see, we need to make this offset through some currency depreciation engineering, and what it does is that it re -interference.

But it is not an easy task for those who make a Swiss policy. Caused by SNB intervention in the foreign exchange market Switzerland is being labeled as a currency manual In the first tenure of Trump and the beginning of this year, the country was added to the “supervision list” of the trade partners whose currency methods and financial policies are closely monitored. “

Trump’s rate also also considers “currency handling and trade barriers”. Swiss officials officials have denied the allegation of consciously devaluing Swiss Frank against the greenback.

However, Sharma of BOA said that the SNB is likely to move on with currency intervention, though “even though the anger of the US administration has come forward.”

“In some ways, they have got a few more to lose … they have to start thinking about the Swiss industry.”