US tariffs of 39% on Swiss exports, announced last week by Donald Trump, formally came into force on Thursday. Swiss public radio SRF’s economics correspondent outlines what this means for jobs and prosperity. The tariffs are here – what’s in store for the Swiss economy? On day one, not so much. But as the days, weeks, and months go by, the pain will increase. The problem for affected companies is that they have suddenly become less competitive than their rivals – the US tariffs on Swiss exports are much higher than for competing products from the European Union (EU), for example. Companies in the watchmaking and machine industries, as well as chocolate and cheese manufacturers, have meanwhile already had several months to prepare for the tariff hikes. They have used this time to fill their warehouses in the US, where a lot of goods are now stockpiled – having been imported at a lower tariff rate. Companies are also reorganising their supply chains. They can produce more locally or ...
