Swiss economy under pressure Federal Council convenes crisis meeting on Monday due to US tariffs
In view of the threat of US tariff increases on Swiss products, the Federal Council is planning an emergency meeting. The SP is calling for a reorientation of foreign policy.
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- The Federal Council will hold an emergency meeting on Monday to discuss reactions to the announced US punitive tariffs of 39% on Swiss products, which are set to take effect on August 7.
- Business representatives and political parties are calling for swift measures - from counter-tariffs to the establishment of a task force - while the SP is calling for a reorientation of foreign policy towards the EU.
- To mitigate the possible consequences, a debate is also being initiated on reducing the OECD minimum tax to ease the burden on the export industry.
The Federal Council is under pressure to react quickly to the tariff increases announced by the USA. A crisis meeting is to be held on Monday via video conference to discuss possible measures, according to the Tages Anzeiger newspaper. The State Secretariat for Economic Affairs (Seco) has already scheduled a meeting with business representatives for Monday morning to discuss the situation.
The announcement by the USA to increase tariffs on Swiss products to 39 percent has caused concern in Switzerland. Time is of the essence, as the tariffs could come into force as early as August 7. Many Swiss companies would then no longer be able to export their products to the USA, which would have considerable economic consequences.
Criticism of Swiss strategy
Finance Minister Karin Keller-Sutter initially tried to calm the situation, but the urgency of the situation quickly became clear. The Federal Council is now planning to hold an extraordinary meeting to discuss possible diplomatic steps to avert the tariff increases.
The SP has sharply criticized Switzerland's strategy to date in its dealings with the USA. Co-President Mattea Meyer is calling for closer cooperation with the EU and accuses President Karin Keller-Sutter of having tied herself too closely to the USA. Meyer emphasizes that the EU is a more reliable partner and calls for a reorientation of foreign policy.
Tax relief due to customs policy?
The Center Party is also calling for measures. National Councillor Elisabeth Schneider-Schneiter proposes setting up a task force to find solutions together with affected companies. Party President Matthias Bregy suggests examining possible countermeasures, such as counter-tariffs on US products.
The economic impact of the tariff increases could be considerable. Economists are warning of a possible recession if it is not possible to avert the tariffs. The Federal Council faces the challenge of acting quickly and effectively to protect the interests of the Swiss economy.
The discussions about the tariff increases have also triggered a debate about the OECD minimum tax. The Center Party is calling for the Federal Council to examine whether it would make sense to suspend or reduce the tax in order to relieve the burden on the export industry.
