Ruling weakens US negotiating position according to Sahgal

Switzerland had sent its optimized offer to Washington. "The goal is clear: the tariff of 39 percent must be reduced as quickly and significantly as possible," said Sahgal in an interview published on Sunday by the "NZZ am Sonntag".

However, the ruling puts the US administration under time pressure. "If the Supreme Court restricts the previous legal basis or even declares it inapplicable before Switzerland concludes a deal with the US, everything will become more complicated for Washington," he said. The US government would then have to find a new legal basis for the tariffs against Switzerland.

Background: On Friday (local time), an appeals court in the US denied US President Donald Trump the authority to impose far-reaching tariffs on imported products by invoking an emergency law. According to Sahgal, the Swiss-US Chamber of Commerce assumes that the tariffs on Switzerland are included in the ruling. However, the decision of the Court of Appeal will not come into force before October 14. This gives the US government time to appeal to the Supreme Court. Trump has announced his intention to do so.

It remains to be seen when and how the Supreme Court will decide. Sahgal does not expect the Supreme Court to give the US President a blank cheque - even if the Court has a conservative majority. The head of the Chamber of Commerce believes it is possible that the court will allow a limited application of the Emergency Powers Act as a basis for tariffs.