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Int'l Business Times
9 minutes ago
- Business
- Int'l Business Times
Swiss To Try To Negotiate Way Out Of Stiff US Tariffs
The Swiss government said Friday it would negotiate with the United States to try to avoid the 39 percent punitive US tariff rate that would ravage its key pharmaceutical industry. As part of a slew of new tariffs unveiled late Thursday on nearly 70 countries, Washington said it planned to charge a 39 percent tariff rate on Swiss goods, higher than the 31 percent rate that it had been threatening to implement. The new rate is set to go into effect on August 7, and would also prove painful for Switzerland's manufacturing and watchmaking industries. The Swiss government said it remains in contact with US authorities and "still hopes to find a negotiated solution...", in a statement on X. "The Federal Council notes with great regret the intention of the US to unilaterally burden Swiss imports with considerable import duties despite the progress made in bilateral talks and Switzerland's very constructive position," it added. Senior Swiss officials had held numerous discussions with their US counterparts in an attempt to reach a deal with the administration of US President Donald Trump, like Britain and the European Union have. President Karin Keller-Sutter, who is also finance minister, spoke with Trump on Thursday. "The trade deficit remains the centre" of Trump's preoccupation and they could not reach an agreement on a framework trade deal, she said on X. The United States is a key trading partner for Switzerland, taking 18.6 percent of its total exports last year, according to Swiss customs data. Pharmaceuticals dominated at 60 percent of Swiss goods exports to the United States, followed by machinery and metalworking at 20 percent and watches at eight percent. The trade balance was heavily in Switzerland's favour at 40 billion Swiss francs ($49 billion) last year. Trump has paid particular attention to trade deficits, considering them a sign that the United States is being taken advantage of by its trading partners. Switzerland is however the sixth country in terms of foreign direct investment into the United States, particularly in research and development. Swiss pharmaceutical giants Roche and Novartis have both announced plans to invest tens of billions of dollars in the United States in the coming five years as they try head off threats by Trump to impose separate tariffs of up to 200 percent on medicines if foreign drugmakers don't move more production into the United States. The trade association representing the small and medium-sized firms in Switzerland's machine and metal-working industry urged the government to take advantage of the negotiating window before the entry into force of the new tariffs which it warned would have serious long-term consequences.
France 24
9 minutes ago
- Business
- France 24
Swiss to try to negotiate way out of stiff US tariffs
As part of a slew of new tariffs unveiled late Thursday on nearly 70 countries, Washington said it planned to charge a 39 percent tariff rate on Swiss goods, higher than the 31 percent rate that it had been threatening to implement. The new rate is set to go into effect on August 7, and would also prove painful for Switzerland's manufacturing and watchmaking industries. The Swiss government said it remains in contact with US authorities and "still hopes to find a negotiated solution...", in a statement on X. "The Federal Council notes with great regret the intention of the US to unilaterally burden Swiss imports with considerable import duties despite the progress made in bilateral talks and Switzerland's very constructive position," it added. Senior Swiss officials had held numerous discussions with their US counterparts in an attempt to reach a deal with the administration of US President Donald Trump, like Britain and the European Union have. President Karin Keller-Sutter, who is also finance minister, spoke with Trump on Thursday. "The trade deficit remains the centre" of Trump's preoccupation and they could not reach an agreement on a framework trade deal, she said on X. The United States is a key trading partner for Switzerland, taking 18.6 percent of its total exports last year, according to Swiss customs data. Pharmaceuticals dominated at 60 percent of Swiss goods exports to the United States, followed by machinery and metalworking at 20 percent and watches at eight percent. The trade balance was heavily in Switzerland's favour at 40 billion Swiss francs ($49 billion) last year. Trump has paid particular attention to trade deficits, considering them a sign that the United States is being taken advantage of by its trading partners. Switzerland is however the sixth country in terms of foreign direct investment into the United States, particularly in research and development. Swiss pharmaceutical giants Roche and Novartis have both announced plans to invest tens of billions of dollars in the United States in the coming five years as they try head off threats by Trump to impose separate tariffs of up to 200 percent on medicines if foreign drugmakers don't move more production into the United States. The trade association representing the small and medium-sized firms in Switzerland's machine and metal-working industry urged the government to take advantage of the negotiating window before the entry into force of the new tariffs which it warned would have serious long-term consequences.
News18
32 minutes ago
- Business
- News18
US global trade partners react to Trumps new tariffs
Agency: Last Updated: Washington, Aug 1 (AP) US trade partners reacted Friday to President Donald Trump's executive order that would introduce new tariffs on many of them in seven days, as the global economy and alliances face a fresh test from the president's trade agenda. Trump's order issued Thursday night came after a flurry of tariff-related activity in recent days as the White House announced agreements with various nations and blocs ahead of Trump's self-imposed Aug 1 deadline. Trump also said Thursday he would extend trade negotiations with Mexico for 90 days. But the vast majority of nations are continuing to face uncertainty ahead of the coming deadline. While a handful of trade deals have trickled in, many details remain hazy, with businesses and manufacturers around the world bracing for heightened operating costs and potential price hikes. Meanwhile, Trump's overhaul of US trade policy hasn't gone unchallenged. Appellate court judges have expressed broad scepticism around the president's legal rationale for his most expansive round of tariffs. Switzerland hit with 39% tariff and will try to negotiate The land of luxury watches, pharmaceuticals and secretive financial services was reeling Friday, Switzerland's National Day, upon learning it had been slapped with a 39% tariff, although Trump had proposed a 31% rate in April. The Swiss government said officials will continue to seek a negotiated solution. 'The Federal Council notes with great regret that, despite the progress made in bilateral talks and Switzerland's very constructive stance from the outset, the US intends to impose unilateral additional tariffs on imports from Switzerland," the government said in a post on X. Trump orders a 35% tariff for goods from Canada, citing a lack of cooperation on illicit drugs Trump has raised the tariff rate on US imports from Canada to 35% from 25%, effective Friday. The announcement from the White House late Thursday said Canada had failed 'to do more to arrest, seize, detain, or otherwise intercept drug trafficking organisations, other drug or human traffickers, criminals at large, and illicit drugs". Trump earlier had threatened to impose the higher tariff on Canada if no deal was reached by Friday, his deadline for reaching trade agreements with dozens of countries. Canada was not included in Trump's updated list of tariff rates on other countries announced late Thursday. Those import duties are due to take effect on Aug 7. Malaysia hails 'significant achievement' in 19% tariff rate Malaysia's Trade Ministry said Friday that the US tariff reduction from 25% to 19% was a 'significant achievement" as the deal was struck without compromising key national interests. 'The 19% rate roughly tracks the rate of other countries in the Southeast Asian region," the ministry said in a statement. 'Most importantly, Malaysia had stood firm on various red line' items, and the 19% tariff rate was achieved without compromising the nation's sovereign right to implement key policies to support the nation's socio-economic stability and growth." The ministry said that Malaysia's economy remains resilient despite global headwinds, citing strong domestic demand and ongoing structural reforms. The statement didn't give further details but officials previously said non-tariff barriers such as halal certification, which affects US beef and poultry exports, along with digital trade and government procurement were sticky points. It's unclear what concessions Malaysia made. Cambodia will impose zero tariffs on all American goods Cambodia's Deputy Prime Minister Sun Chanthol, who led his nation's trade talks with the US, thanked Trump for setting the tariff rate on Cambodian goods at 19% and said his country will impose zero tariffs on all American goods. When Washington originally posted its list of notional 'reciprocal" tariffs, the rate for goods from Cambodia was 49%, one of the highest in the world. It had estimated that Cambodian tariffs on US imports averaged 97%. Sun Chanthol also said Cambodia would purchase 10 passenger aircraft from Boeing in a deal they hoped to sign later this month. Several other nations had already announced similar aircraft purchase deals as part of their trade packages. Trump had threatened to not conclude a deal with reduced tariffs if Cambodia and Thailand did not stop a recent armed conflict over border territory. The two nations agreed on a ceasefire beginning Tuesday that appears to be holding. Cambodia publicly celebrated Trump's peace initiative, suggesting he deserved a Nobel Prize for his intervention. Sun Chanthol said Friday that Cambodia would nominate him for the honour. Australia's 10% tariff rate is vindication of country's 'cool and calm negotiations,' trade minister says Australian Trade Minister Don Farrell says gaining the minimum US tariff on exports including beef, lamb, wine and wheat gave Australia a competitive advantage over some competitors. Farrell told reporters Australia did not introduce tariffs on US goods at any point, and added, 'I haven't seen any case or any example where the retaliatory imposition of tariffs has resulted in a country being in a better position." Farrell argues that no US tariffs can be justified because Australia imposes no tariffs on its bilateral free trade partner. The United States has enjoyed a trade surplus with Australia for decades. Australian Prime Minister Anthony Albanese has been criticised for failing to secure a face-to-face meeting with Trump to discuss trade. Japan welcomes Trump's signing of the executive order as an ease in uncertainty Japanese Chief Cabinet Secretary Yoshimasa Hayashi welcomed Trump's signing of the executive order setting Japan's new reciprocal tariffs as a step that would reduce uncertainty of the US trade policy and its negative impact on the global economy, including that of Japan. Hayashi, however, said Japan still needs to closely examine the measures and continue urging prompt implementation by the US government to carry out the agreement, including reduction of tariffs on automobiles and auto parts. Hayashi acknowledged that Japan's new tariff rate of 15% is a 'major reduction" from the initially imposed 25%, but his government will continue to watch and mitigate its impact on Japanese exports, including by providing financial assistance for small and medium-sized businesses. New Zealand looks to lobby for lower tariff rates New Zealand officials said they would lobby the administration for a change to the 15% tariff announced for the country's exporters to the US. It's an increase from the original 10% baseline announced for New Zealand in April. 'We don't think this is a good thing. We don't think it's warranted," Trade Minister Todd McClay told Radio New Zealand Friday. He said New Zealand appeared to have been targeted for a larger levy because the country records a trade deficit with the US but that the gap of about half a billion dollars each year was 'not significant or meaningful". Neighbouring Australia dodged an increase to remain at 10%, but it records a trade surplus with the US, McClay added. The United States in January overtook Australia to become New Zealand's second-largest export partner, behind China. New Zealand exports are largely made up of meat, dairy, wine and agricultural machinery. Taiwan president says final tariff negotiations with US yet to come Taiwan President Lai Ching-te said Taiwan had yet to engage in final negotiations with the US owing to scheduling difficulties and that he was hopeful the final tariff rate would be reduced even further after a final round of talks. The Trump administration hit Taiwan with 32% tariffs, and lowered it to 20% on Thursday. Taiwan was notified on Thursday by the administration of the lower rate. 'Twenty per cent from the beginning has not been our goal. We hope that in further negotiations we will get a more beneficial and more reasonable tax rate," he told reporters in Taipei on Friday. Lai also linked trade talks to security issues, as the US is Taiwan's largest ally even though it does not formally recognise the island. 'We want to strengthen US Taiwan cooperation in national security, tech, and multiple areas," he said Friday. The US is Taiwan's most important export market and strategic ally, Lai said in an earlier statement Friday morning. Cambodia prime minister thanks Trump for dropping tariff rate Cambodia Prime Minister Hun Manet expressed his thanks to Trump for the dropping of tariffs from 36% to 19% and he called the reduction 'good news" for Cambodia. Posted on his social media platform, Hun Manet said Trump had not only helped broker a ceasefire between Cambodia and Thailand forces after nearly a weeklong clash but also helped Cambodia's economy by lowering tariffs. 'This is good news for the people and economy of Cambodia to continue developing the country," Hun Manet said. Thailand successfully negotiates lower tariff rates Thailand's government spokesperson Jirayu Houngsub said Thailand says the US agreed to reduce the tariffs rate from 36% to 19%, a rate similar to those imposed on many other Southeast Asian countries such as Vietnam and the Philippines. top videos View all 'It's one of the major successes of Team Thailand in a win-win approach, to secure the country's export base and economic security in a long run," he said in a statement. He didn't immediately say what was the latest offer Thailand made to the US. The agreement came days after a ceasefire between Thailand and Cambodia to halt the nearly weeklong clashes that killed at least 41 people. It was brokered with US pressure as Trump said he would not move forward with trade agreements if the conflict continued. (AP) SCY SCY (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: August 01, 2025, 13:00 IST News agency-feeds US global trade partners react to Trumps new tariffs Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Associated Press
an hour ago
- Business
- Associated Press
The Latest: US trade partners around the world react to Trump's new tariffs
U.S. trade partners reacted Friday to President Donald Trump's executive order that would introduce new tariffs on many of them in seven days, as the global economy and alliances face a fresh test from the president's trade agenda. Trump's order issued Thursday night came after a flurry of tariff-related activity in recent days as the White House announced agreements with various nations and blocs ahead of Trump's self-imposed Aug. 1 deadline. Trump also said Thursday he would extend trade negotiations with Mexico for 90 days. But the vast majority of nations are continuing to face uncertainty ahead of the coming deadline. While a handful of trade deals have trickled in, many details remain hazy, with businesses and manufacturers around the world bracing for heightened operating costs and potential price hikes. Meanwhile, Trump's overhaul of U.S. trade policy hasn't gone unchallenged. Appellate court judges have expressed broad skepticism around the president's legal rationale for his most expansive round of tariffs. Here's the latest: Switzerland hit with 39% tariff and will try to negotiate The land of luxury watches, pharmaceuticals and secretive financial services was reeling Friday, Switzerland's National Day, upon learning it had been slapped with a 39% tariff, although Trump had proposed a 31% rate in April. The Swiss government said officials will continue to seek a negotiated solution. 'The Federal Council notes with great regret that, despite the progress made in bilateral talks and Switzerland's very constructive stance from the outset, the US intends to impose unilateral additional tariffs on imports from Switzerland,' the government said in a post on X. Trump orders a 35% tariff for goods from Canada, citing a lack of cooperation on illicit drugs Trump has raised the tariff rate on U.S. imports from Canada to 35% from 25%, effective Friday. The announcement from the White House late Thursday said Canada had failed 'to do more to arrest, seize, detain, or otherwise intercept drug trafficking organizations, other drug or human traffickers, criminals at large, and illicit drugs.' Trump earlier had threatened to impose the higher tariff on Canada if no deal was reached by Friday, his deadline for reaching trade agreements with dozens of countries. Canada was not included in Trump's updated list of tariff rates on other countries announced late Thursday. Those import duties are due to take effect on Aug. 7. Malaysia hails 'significant achievement' in 19% tariff rate Malaysia's Trade Ministry said Friday that the U.S. tariff reduction from 25% to 19% was a 'significant achievement' as the deal was struck without compromising key national interests. 'The 19% rate roughly tracks the rate of other countries in the Southeast Asian region,' the ministry said in a statement. 'Most importantly, Malaysia had stood firm on various 'red line' items, and the 19% tariff rate was achieved without compromising the nation's sovereign right to implement key policies to support the nation's socio-economic stability and growth.' The ministry said that Malaysia's economy remains resilient despite global headwinds, citing strong domestic demand and ongoing structural reforms. The statement didn't give further details but officials previously said non-tariff barriers such as halal certification, which affects U.S. beef and poultry exports, along with digital trade and government procurement were sticky points. It's unclear what concessions Malaysia made. Cambodia will impose zero tariffs on all American goods Cambodia's Deputy Prime Minister Sun Chanthol, who led his nation's trade talks with the U.S., thanked Trump for setting the tariff rate on Cambodian goods at 19% and said his country will impose zero tariffs on all American goods. When Washington originally posted its list of notional 'reciprocal' tariffs, the rate for goods from Cambodia was 49%, one of the highest in the world. It had estimated that Cambodian tariffs on U.S. imports averaged 97%. Sun Chanthol also said Cambodia would purchase 10 passenger aircraft from Boeing in a deal they hoped to sign later this month. Several other nations had already announced similar aircraft purchase deals as part of their trade packages. Trump had threatened to not conclude a deal with reduced tariffs if Cambodia and Thailand did not stop a recent armed conflict over border territory. The two nations agreed on a ceasefire beginning Tuesday that appears to be holding. Cambodia publicly celebrated Trump's peace initiative, suggesting he deserved a Nobel Prize for his intervention. Sun Chanthol said Friday that Cambodia would nominate him for the honor. Australia's 10% tariff rate is vindication of the country's 'cool and calm negotiations,' trade minister says Australian Trade Minister Don Farrell says gaining the minimum U.S. tariff on exports including beef, lamb, wine and wheat gave Australia a competitive advantage over some competitors. Farrell told reporters Australia did not introduce tariffs on U.S. goods at any point, and added, 'I haven't seen any case or any example where the retaliatory imposition of tariffs has resulted in a country being in a better position.' Farrell argues that no U.S. tariffs can be justified because Australia imposes no tariffs on its bilateral free trade partner. The United States has enjoyed a trade surplus with Australia for decades. Australian Prime Minister Anthony Albanese has been criticized for failing to secure a face-to-face meeting with Trump to discuss trade. Japan welcomes Trump's signing of the executive order as an ease in uncertainty Japanese Chief Cabinet Secretary Yoshimasa Hayashi welcomed Trump's signing of the executive order setting Japan's new reciprocal tariffs as a step that would reduce uncertainty of the U.S. trade policy and its negative impact on the global economy, including that of Japan. Hayashi, however, said Japan still needs to closely examine the measures and continue urging prompt implementation by the U.S. government to carry out the agreement, including reduction of tariffs on automobiles and auto parts. Hayashi acknowledged that Japan's new tariff rate of 15% is a 'major reduction' from the initially imposed 25%, but his government will continue to watch and mitigate its impact on Japanese exports, including by providing financial assistance for small and medium-sized businesses. New Zealand looks to lobby for lower tariff rates New Zealand officials said they would lobby the administration for a change to the 15% tariff announced for the country's exporters to the U.S. It's an increase from the original 10% baseline announced for New Zealand in April. 'We don't think this is a good thing. We don't think it's warranted,' Trade Minister Todd McClay told Radio New Zealand Friday. He said New Zealand appeared to have been targeted for a larger levy because the country records a trade deficit with the U.S. but that the gap of about half a billion dollars each year was 'not significant or meaningful.' Neighboring Australia dodged an increase to remain at 10%, but it records a trade surplus with the U.S., McClay added. The United States in January overtook Australia to become New Zealand's second-largest export partner, behind China. New Zealand exports are largely made up of meat, dairy, wine and agricultural machinery. Taiwan president says final tariff negotiations with US yet to come Taiwan President Lai Ching-te said Taiwan had yet to engage in final negotiations with the U.S. owing to scheduling difficulties and that he was hopeful the final tariff rate would be reduced even further after a final round of talks. The Trump administration hit Taiwan with 32% tariffs, and lowered it to 20% on Thursday. Taiwan was notified on Thursday by the administration of the lower rate. 'Twenty percent from the beginning has not been our goal. We hope that in further negotiations we will get a more beneficial and more reasonable tax rate,' he told reporters in Taipei on Friday. Lai also linked trade talks to security issues, as the U.S. is Taiwan's largest ally even though it does not formally recognize the island. 'We want to strengthen U.S. Taiwan cooperation in national security, tech, and multiple areas,' he said Friday. The U.S. is Taiwan's most important export market and strategic ally, Lai said in an earlier statement Friday morning. Cambodia prime minister thanks Trump for dropping tariff rate Cambodia Prime Minister Hun Manet expressed his thanks to Trump for the dropping of tariffs from 36% to 19% and he called the reduction 'good news' for Cambodia. Posted on his social media platform, Hun Manet said Trump had not only helped broker a ceasefire between Cambodia and Thailand forces after nearly a weeklong clash but also helped Cambodia's economy by lowering tariffs. 'This is good news for the people and economy of Cambodia to continue developing the country,' Hun Manet said. Thailand successfully negotiates lower tariff rates Thailand's government spokesperson Jirayu Houngsub said Thailand says the U.S. agreed to reduce the tariffs rate from 36% to 19%, a rate similar to those imposed on many other Southeast Asian countries such as Vietnam and the Philippines. 'It's one of the major successes of Team Thailand in a win-win approach, to secure the country's export base and economic security in a long run,' he said in a statement. He didn't immediately say what was the latest offer Thailand made to the U.S. The agreement came days after a ceasefire between Thailand and Cambodia to halt the nearly weeklong clashes that killed at least 41 people. It was brokered with U.S. pressure as Trump said he would not move forward with trade agreements if the conflict continued.
Gulf Insider
04-07-2025
- Business
- Gulf Insider
Swiss To Vote On 50% Inheritance Tax That Risks Exodus Of The Super-Rich
In a national referendum set for November, the people of Switzerland will vote on whether the country should impose a 50% inheritance tax on the wealthiest of people — under a regimen so harsh that not even surviving spouses would be spared from the rapacious confiscation. Naturally, this is triggering predictions of a mass-exodus of wealthy people, with opponents pointing to a wave of departures the United Kingdom has witnessed in the wake of its own recent wealth-seizure move. Under the proposal, a 50% federal tax would apply to inheritances and gifts above 50 million francs — about $63 million. The measure isn't supported by the legislative Federal Assembly nor the executive Federal Council. However, under Swiss law, public proposals must be put to a nationwide plebiscite if 100,000 supporting signatures are collected. The signature campaign was led by Switzerland's Young Socialists. Reliably sounding like an elementary school group project, under the Young Socialists proposal, the confiscated wealth would be thrown down a woke rathole, with all proceeds used to combat 'climate change.' While Swiss inheritance taxes at the cantonal level provide an inheritance tax exemption for transfers to spouses and direct descendants, the socialists' proposal for the 50% federal tax would not. Peter Spuhler, 66-year-old owner of steel giant Stadler Rail, decried the proposal as a pending 'disaster for Switzerland,' estimating the tax would seize upwards of 2 billion Swiss francs A popular vote for the new inheritance tax on Nov 30 could hammer Switzerland's long-held status as a premier tax haven for the world's wealthiest people. A consortium of opponents that includes centrists and conservatives is already working to dissuade Swiss voters from indulging any impulses to soak the rich. 'The brutal 50% inheritance tax threatens the existence of family businesses and causes high economic costs. It's a setback for everyone,' said the organization in a statement. In April, a new tax rule took effect in the UK, imposing a 40% inheritance tax on the global assets of 'non-doms,' a term that refers to residents of the UK who are considered under British law to have their permanent home — their domicile — in another country. Chancellor Rachel Reeves is already considering avenues by which the change can be undone, after it promptly triggered an exodus of wealthy people eyeing alternatives like the United Arab Emirates, Italy and, yes, Switzerland. Among those who are either considering departure from the UK or have already done so: Egypt's richest man, Nassef Sawiris, and Indian steel tycoon Lakshmi Mittal, who has lived in the UK for 30 years. Georgia Fotiou, a lawyer advising private clients at Zurich-based Staiger Law, says the proposal is already harming Switzerland's ability to benefit from the UK's own inheritance-tax folly. 'In terms of the chance for Switzerland to attract people leaving the UK, the damage has been done. The timing was terrible,' she told the Financial Times . 'It hasn't stopped everyone from coming but more have chosen Italy, Greece, the United Arab Emirates and elsewhere instead.' To become law, the proposal must clear two hurdles, garnering not only a majority of support nationwide, but also in a majority of Switzerland's 26 cantons. Despite the substantial likelihood of failure, the proposal already has some wealthy people on the move, say Swiss tax advisors and wealth managers. They caution that even a defeat — if it's by a relatively modest margin — could leave mega-wealthy individuals hesitant about the country. As Frédéric Rochat, managing partner of Geneva-based Lombard Odier, told the Times , 'It needs to be voted down with such an overwhelming majority [that this possibility can] be put to bed for 20 years.'
