This currently applies to exporting Swiss companies

At the end of last week, the US president announced on his social network that he was suspending country-specific reciprocal tariffs for practically all countries with immediate effect. They now have three months to recover from the tariff shock of the past few days. At least a little. This is because the duties of ten percent, which have been in place since 5 April in addition to the existing tariff rate, remain in place. China remains the big exception.

What applies now?

this means that the 31 percent on goods of Swiss origin and the 20 percent on goods of EU origin will fall back to ten percent (see here). So back to square one. The EU has responded by also suspending its countermeasures for 90 days.

Counter tariffs for China remain in place

However, the additional duties continue to apply to products of Chinese origin: since 10 April, they have amounted to 145 percent of the value of the goods. This figure is the result of the previously known duties of 125 percent and the existing fentanyl duties against Chinese imports, which amount to 20 percent. The People's Republic of China in turn followed suit and increased its reciprocal tariffs from 84 percent to 125 percent on products of US origin.

What does this mean for our industry?

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 Swiss textiles. It accounts for six percent 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 percent.

What is important

The non-preferential rules of origin of the USA apply to the calculation of the duty rate. The new duties are calculated differently depending on the origin of the goods. Specific regulations apply to textiles and clothing - these can be viewed here.

A concrete case study for members is available in the protected member area. As soon as the origin of the goods has been determined, the corresponding customs tariff can be calculated. This is added to the FOB price (Free on Board, according to Incoterms) of the goods.

Switzerland must act

The announced tariffs on Swiss goods seemed hardly comprehensible. The US government justified the measure with allegedly existing Swiss tariffs of 61 percent. However, since 1 January 2024, Switzerland has no longer levied any tariffs on industrial products. In addition, the bilateral trade surplus in goods is largely offset by a corresponding deficit in the services sector. What's more, according to Economiesuisse, Switzerland is one of the largest investors in the USA.

Donald Trump justified the tariff sledge against the countries with their trade deficit.

Swiss Textiles supports you

It is clear to Swiss Textiles that Switzerland does not pursue a protectionist policy. On the contrary, it has always been in favour of open and reliable global trade.

The industry association is therefore calling on the Federal Council to stabilise relations with other trading partners. In particular, relations with the EU must be improved as quickly as possible. Especially in uncertain times like these, an agreement within the framework of Bilaterals III is of central importance.

It remains to be seen whether the customs zenith has been reached for the time being with the recent announcements. We will keep you regularly updated on the latest developments in the member area and via our member information.

Swiss Textiles will keep an overview for you and keep you organised: Please feel free to contact me (Björn Von der Crone, bjoern.vondercrone@swisstextiles.ch).