News ticker: Trump 2.0 trade policy - consequences for Switzerland

In the trade dispute between the U.S. and Canada, the administration in Washington has imposed new import bans on select products from its neighbor. The measures affect certain dairy products, alcoholic beverages, and motorcycles. The measures are set to take effect on September 29 and, according to the U.S. government, affect imports worth several billion U.S. dollars. The move comes one day after the imposition of Canadian retaliatory tariffs on U.S. goods and further escalates trade tensions between the two countries.

The trade conflict between the U.S. and Canada continues to escalate. After 50 percent U.S. tariffs on selected Canadian goods took effect, U.S. President Trump announced today additional 50 percent tariffs on cars and auto parts from Canada. These are set to take effect on January 1, 2027. Canada is responding to the failed tariff negotiations with retaliatory tariffs set to take effect on September 8, 2026. The measures are expected to affect, among other things, steel, dairy products, agricultural equipment, and electrical appliances. Canada is the United States’ second-largest trading partner after Mexico.

The U.S. is imposing new punitive tariffs ranging from 10 to 15 percent on 60 trading partners as part of a Section 301 investigation into allegedly insufficient measures against forced labor new punitive tariffs ranging from 10 to 12.5 percent. Swiss imports are now subject to an additional tariff of 12.5 percent. For products with a lower MFN tariff rate, the 12.5 percent tariff will apply in the future. For products with higher MFN tariffs, the higher rate remains in effect.

economiesuisse firmly rejects the allegation of forced labor and considers the decision neither comprehensible nor justified. Although the U.S. is currently adhering to the 15 percent cap agreed upon in the Joint Statement, uncertainty for Swiss companies remains. Additional tariff burdens resulting from the ongoing U.S. investigation into industrial overcapacity remain a possibility and must be prevented at all costs.

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The U.S. administration has announced additional tariffs of 50 percent on a wide range of Canadian products. Among other items, the measures affect wine, cement, furniture, textiles, and other consumer goods. The measure is set to take effect in 30 days, on August 19, 2026, and is based on Section 338 of the Tariff Act of 1930, which is being invoked for the first time. 

Washington justifies the move by citing what it views as discriminatory treatment by Canada of American automobiles, alcoholic beverages, and dairy products. Ottawa rejects the allegations and considers this a violation of the USMCA free trade agreement. 

Exempt from the new tariffs are, among other things, energy products, potash, critical minerals, fish, and goods already subject to sector-specific U.S. tariffs, such as steel and aluminum.

Following the conclusion of a Section 301 investigation, the U.S. government has imposed an additional 25 percent tariff on certain Brazilian goods imposed. The investigation concluded that various Brazilian practices impose an impermissible burden on U.S. trade. These include, among other things, measures related to digital trade and electronic payment systems, preferential tariffs, shortcomings in intellectual property protection, and market access for ethanol. At the same time, the measure provides for numerous exceptions, particularly for goods for which the U.S. relies on Brazilian supplies or produces only in limited quantities. These include, among others, beef, coffee, orange juice, and aircraft parts.

As part of the economic and scientific mission to the United States, Swiss President Guy Parmelin presented U.S. Trade Representative Jamieson Greer with a statement on the further implementation of the Joint Statement concluded last November. Among other things, the plan calls for simplifications in the recognition of U.S. standards in the areas of conformity assessment bodies, medical devices, passenger cars, and public procurement. 

Mutual compliance with the Joint Statement and a maximum tariff rate of 15 percent remain crucial for the Swiss export sector. Uncertainties persist due to ongoing U.S. Section 301 investigations, which could result in additional trade policy measures.

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U.S. president Trump threatens in a post on Truth Social that he will impose tariffs of up to 100 percent on all exports to the U.S. if European countries introduce digital taxes. The measure is intended to replace existing trade agreements, regardless of their status. The European Commission rejects the threat and emphasizes its right to regulate; in the event of tariffs, it intends to respond decisively.

The EU member states have definitively approved the trade agreement with the U.S. The plan calls for the elimination of tariffs on U.S. industrial goods as well as improved market access for U.S. agricultural products and seafood. Implementation will take place following publication in the official journal. A safeguard mechanism ties benefits to the U.S.’s compliance with its obligations.

U.S. Trade Representative Jamieson Greer has launched a Section 301 investigation against Germany. Washington accuses Berlin of systematically underpaying for innovative drugs, causing U.S. patients to bear a disproportionate share of global R&D costs. The focus is also on Germany’s planned healthcare reform, which includes further cost cuts. Depending on the outcome, trade policy measures—including punitive tariffs—could be imposed.

The European Parliament has approved tariff reductions on numerous U.S. imports, thereby paving the way for the implementation of the trade agreements with Washington ("Turnberry Deal"). The plan is for the EU to eliminate tariffs on U.S. industrial products and facilitate market access for agricultural products and seafood. In return, the U.S. is to impose a 15 percent tariff on most EU products.

However, the EU’s concessions will only apply if Washington fulfills its obligations—particularly regarding tariffs on washing machines and products containing steel. Otherwise, Brussels intends to consider countermeasures. The agreement is set to expire at the end of 2029.

Following approval by the Parliament, the EU Council of Ministers must still give its consent. However, this is considered a formality. The rules are set to take effect no later than July 4.