US trade policy
Secure trade relations have never been as important as they are now
US President Donald Trump announced the latest tariffs on Swiss National Day of all days. Disproportionately high additional tariffs of 39% have applied to Switzerland since 7 August. They are massively damaging the textile industry, which exports CHF 170 million to the USA, and worsen our position in relation to competitors from other countries. Despite the cold shower, Swiss Textiles is calling for a continuation of the dialogue with the USA and for good relations with other partners such as the EU to be secured.
The Trump board Image: Keystone
Switzerland did not expect this. Experts were indeed bracing themselves for higher duties in US President Donald Trump's latest round of tariffs. They assumed a "worst case scenario of 31 per cent". The 39 per cent caught everyone off guard.
What applies to the industry?
The new regulation has been in force since 7 August.
Instead of the previous customs "flat rate" of ten per cent, all countries are charged different levels of duty. According to the Executive Order, the so-called most favoured nation (MFN) duty rate is added on top.
The determination of origin remains decisive for the calculation of the duty rate. Specific regulations apply to textiles and clothing - these can be found here.
A specific case study is available to members of Swiss Textiles in the protected member area. As soon as the origin of the goods has been established, the corresponding customs tariff can be determined. This is added to the FOB price(Free on Board, according to Incoterms) of the goods.
Agreements suddenly no longer count
Switzerland is not the only country to lose out. Canada has also been dealt a particular blow. Although there is an agreement between the neighbouring country and the USA, it has not been spared the latest customs hammer. All other countries with an agreement have also been hit.
Meanwhile, the USA is not changing the special regulations for China. The separately negotiated agreement remains in place and the punitive tariffs of 125 per cent are suspended. Both countries have until 12 August to reach an agreement. The tariffs will then come back into force.
Switzerland has no longer levied tariffs on industrial products since 1 January 2024. The bilateral goods trade surplus with the USA is largely offset by a corresponding deficit in the services sector. According to Economiesuisse, Switzerland is also one of the largest investors in the USA.
USA fifth most important export market for Swiss textiles
Last year, the Swiss textile and clothing industry exported textiles worth 64 million Swiss francs to the USA. This puts the United States in fifth place among the most important sales markets for textiles. It accounts for six per cent of total exports.
In the clothing sector, goods worth CHF 105 million were sold to the USA - here too, the USA ranks fifth among the most important buyers. Its share of total exports is four per cent.
Rules-based relationships more important than ever
The figures clearly show how important the USA is for our industry's business. Swiss Textiles is therefore calling on the Federal Council to urgently stabilise relations with our trading partners:
- The dialogue with the USA must be continued at the highest level. Switzerland urgently needs to get rid of the tariffs or at least negotiate massively lower duties.
- Rule-based relations once again take centre stage - above all with the EU. The adoption of Bilaterals III is absolutely crucial.
- Free trade agreements such as those with India or Mercosur must move to the centre of our trade interests and finally be ratified.
- The duration of short-time working for companies should be extended to 24 months as quickly as possible so that the jobs at risk remain in Switzerland.