A sweeping 10% general import tariff introduced by the United States came into effect early Saturday morning, shaking global markets and drawing swift international retaliation. The new measure, championed by former President Donald Trump, targets a broad spectrum of goods entering the U.S., including products from longstanding trade partners such as Switzerland, China, and the European Union.
The tariff, which took effect at 6:01 a.m. (Swiss time), applies to a significant portion of goods imported from around the world. Though some exemptions exist, the move marks a significant escalation in U.S. trade policy, signaling a renewed push for trade imbalances to be corrected in America’s favor.
However, the burden for certain nations is poised to intensify dramatically. Starting Wednesday, countries that run significant trade surpluses with the U.S. will be subject to even higher levies. Switzerland will face a punitive 31% tariff rate, while China is set to be hit with 34%, and the European Union with 20%. These figures highlight the Trump administration’s focus on reducing trade deficits by increasing the cost of foreign goods, thereby encouraging domestic consumption of American-made products.
In response to the U.S. tariffs, China wasted no time in announcing countermeasures. On Friday, Beijing confirmed it would impose its own 34% tariffs on American goods beginning April 10, targeting sectors ranging from agriculture to electronics. The move has heightened fears of a renewed trade war reminiscent of the tensions that rattled global markets in the late 2010s.
The financial consequences were immediate and severe. Global markets, already reeling from Thursday’s initial announcements, plummeted further following China’s retaliation. On Friday, the Swiss Market Index (SMI), Switzerland’s leading stock exchange indicator, suffered a dramatic fall. After opening down by 1.24%, the SMI closed with a staggering 5.14% loss, landing at 11,648.83 points—the lowest level recorded since January.
Economists warn that the mounting trade war could have far-reaching implications, not only disrupting supply chains but also accelerating inflation and dampening consumer spending in both developed and emerging markets. Analysts fear that such aggressive tariffs, if sustained, could trigger a global economic slowdown.
For Switzerland, a country heavily reliant on exports, the hike in tariffs is especially concerning. Its economy, known for high-value exports such as pharmaceuticals, machinery, and luxury goods, may face steep losses if its access to the American market continues to erode. Swiss exporters are now reassessing supply chain strategies and pricing models to cope with the sudden cost increases.
Meanwhile, the Trump administration maintains that these tariffs are a necessary correction to long-standing trade imbalances that have disadvantaged American industry for decades. In a post on Truth Social, Trump stated, “This will not be easy, but the end result will be historic for America. We are bringing jobs and companies back like never before. This is an economic revolution.”
As trade tensions intensify, all eyes are on upcoming diplomatic discussions and whether major economies will choose escalation or negotiation. For now, uncertainty reigns, and the global economy braces for the fallout of another round of tariff warfare.
This article is originally published on RTS.
