President Trump has announced that April 2, 2025, will mark a “Day of Liberation” for the United States. On this day, the US will introduce high tariffs on countries accused of engaging in unfair trade practices against the United States. However, Trump has yet to reveal the official list of targeted nations.
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According to Scott Bessent, the US Treasury Secretary and a billionaire hedge fund manager, the targeted countries are referred to as “the dirty 15.” This term refers to nations that allegedly gain an unfair advantage in trade with the US.
Who Are the Targeted Countries?
The Wall Street Journal reports that the tariffs will focus on the 15% of countries with which the US has a structural trade deficit. While the official list remains unpublished, countries like Argentina, Brazil, Mexico, Australia, Japan, South Korea, Canada, China, South Africa, the European Union, Turkey, the UK, Indonesia, Malaysia, Vietnam, Thailand, India, and Switzerland are expected to be affected.
The US Trade Representative recently requested input to identify unfair trade practices. Trump aims to align US tariffs with those imposed by these countries or other trade barriers established by their governments.
Switzerland’s Response
Switzerland has already taken steps to avoid sanctions. Swiss Economy Minister Guy Parmelin sent State Secretary for Economic Affairs Helene Budliger to Washington for negotiations. However, no concrete agreements have been reached.
In a recent interview with Swiss radio SRF, Parmelin admitted that Switzerland faces challenges in resolving the issue, particularly concerning its value-added tax (VAT). Trump views VAT as a trade barrier that disadvantages the US, a stance contested by many economic experts.
“It is difficult to address this issue without understanding the root of the problem,” Parmelin stated. “If the issue is VAT, we are unlikely to change our position, just like other European countries.”
Economic Impact on Switzerland
The potential impact on Switzerland remains unclear. Rudolf Minsch, chief economist at Economiesuisse, believes the tariffs could hurt Switzerland’s export-driven economy.
“Tariffs are generally harmful to an export-based economy,” Minsch explained. However, he noted that Switzerland’s high-value products, including pharmaceuticals, are difficult to replace.
“We do not expect a massive collapse in exports to the US,” Minsch added.
The Swiss National Bank may need to intervene to protect Switzerland’s economy from US trade policies. Whether Switzerland can avoid the tariffs or will have to adjust to a more protectionist US trade policy remains uncertain.
This article is originally published on watson.ch
