By The Rio Times | Created at 2025-04-03 10:42:19 | Updated at 2025-04-04 18:06:04
1 day ago
President Donald Trump’s tariff announcement on April 2, 2025, sourced from the White House Rose Garden speech, shakes Western Europe with a 20% levy on most nations.
Switzerland, however, reels from a unique 31% tariff, while the UK dodges with a lighter 10%. Trump targets trade deficits, pegging the EU’s at $235.6 billion and Switzerland’s at $38.5 billion in 2024, aiming to boost U.S. jobs.
Most Western European countries, tied to the EU, face the 20% rate, reflecting Trump’s claim of a 39% EU tariff on U.S. goods, halved for “kindness.” Switzerland’s 31% stems from a supposed 61% barrier, though it scrapped industrial tariffs in 2024, leaving only a 32% agricultural rate.
The UK, with a $17 billion deficit, secures the 10% baseline, benefiting from post-Brexit trade dynamics. Businesses brace for fallout as the tariffs, effective April 9, hit exports like Swiss pharmaceuticals, worth $63 billion yearly to the U.S., and EU cars.
Switzerland’s economy, per the KOF Institute, expects a 0.2% GDP drop, costing citizens 200 CHF annually. The EU, trading €4.4 billion daily with the U.S., anticipates higher consumer prices, yet pharmaceuticals escape—for now.
Trump’s Tariffs Jolt Europe, Switzerland Faces Steepest Cut. (Photo Internet reproduction)Trump’s Trade Gamble
Trump’s move fulfills a campaign vow to slash the $1.2 trillion U.S. trade gap, echoing his first-term trade wars. He offers a way out—build in America for zero tariffs—but Europe mulls retaliation. Polls show 75% of Germans favor counter-tariffs, hinting at a brewing trade clash.
Switzerland puzzles over its 31% tag, given its free-trade stance and $36 billion in U.S. investments. Companies like Weleda eye U.S. production shifts, while the EU weighs hitting American tech giants. Markets jitter, with S&P 500 futures dipping 3% after the news.
The real story lies in Trump’s gamble: protect U.S. workers or spark a global trade war. Businesses watch as costs rise, supply chains tangle, and Europe’s response looms large.
