The Swiss government has stated that US tariffs will cause a significant slowdown in the Swiss economy, though they do not expect it to result in a collapse.
Since 12th March, the US has imposed a 25% tariff on steel and aluminium products, followed by a 25% tariff on cars starting 3rd April. Additionally, a 10% flat-rate duty on imports from nearly all countries has been in effect since 5th April.
Certain goods, particularly most pharmaceutical products, are currently exempt from the tariffs. However, the country-specific additional duties imposed on 9th April (including a 21% tariff for Switzerland) were suspended for 90 days shortly after they took effect.
Due to the fluctuating nature of these factors, the Swiss government has stated that the impact on the Swiss economy is highly uncertain. At this point, Switzerland is no more affected than other countries.
However, indirect effects are also anticipated, stemming from a slowdown in the global economy and fluctuations in financial markets and exchange rates.
As a result, the forecast GDP growth of 1.4% for this year is expected to be lower, Swiss Info reports.
Furthermore, the Federal Council stated that the short-time working allowance (ILR) is an effective tool to prevent layoffs caused by temporary and unavoidable job losses.
To ensure clarity, the State Secretariat for Economic Affairs (SECO) has informed unemployment insurance enforcement agencies that the new and upcoming duties will be considered valid grounds for claiming the short-time working allowance. This applies as long as the companies directly or indirectly impacted are involved and all other claimant requirements are met.
In addition, the Federal Department of Economic Affairs, Education and Research (EAER) is preparing to submit a proposal to the government to extend the maximum duration of the short-time working allowance from 12 to 18 months, effective until the end of July 2025. This extension represents the maximum period permitted under current legislation.
The executive concludes by stating that, given the volatile nature of current developments, the situation is being continuously monitored. This includes thorough analysis of any potential need for intervention and the assessment of possible economic policy measures, should they become necessary.