Trump’s Tariffs: A New Economic Game? Swiss-US Trade in the Crosshairs
Geneva, Switzerland – September 6, 2025 – A potential shift in Donald Trump’s economic strategy is raising eyebrows and sparking concern across the globe. While initially framed as a push to bring manufacturing jobs back to the US, a leading Swiss economist suggests Trump’s tariff ambitions extend far beyond simple re-industrialization, potentially targeting even traditionally ‘safe’ trading partners like Switzerland. This breaking news, analyzed by archyde.com, delves into the implications of this evolving policy and what it means for the future of international trade.
Beyond ‘Made in the USA’: The Real Motives Behind Trump’s Tariffs
Professor Rolf, from the University of Basel, challenges the conventional narrative surrounding Trump’s trade policies. While the promise of revitalizing the “Rust Belt” and creating American jobs is central to Trump’s rhetoric, Professor Rolf argues the scope of the proposed tariffs – a blanket imposition on all industrial goods – suggests a deeper, potentially more opportunistic motive. “It sounds plausible when Trump says that steel is important and America needs more cars ‘Made in the USA’ again,” Rolf stated in an interview with CH Media. “But he completely exaggerates, and that’s why he is not credible when he says that he is concerned with the people and the jobs in the middle west.”
The professor suspects a focus on increasing government revenue, pointing to Switzerland’s significant trade surplus with the US – particularly high on a per capita basis – as a potential target. This isn’t about protecting American industries, Rolf believes, but about filling the US treasury. “He seems to believe that the pharmaceutical industry is ready and capable of wearing the additional costs of any tariffs themselves instead of passing it down to the American patients,” Rolf explained. “Rich Switzerland will pay a large part of the tariffs itself and thus fill my state treasury.”
Switzerland in the Firing Line? A Trade Imbalance and Unique Products
The situation is complicated by a recent phone call between Swiss Federal President Karin Keller-Sutter and Donald Trump, reportedly focused on the trade imbalance. While Keller-Sutter likely presented a strong case for fair trade, Professor Rolf doubts Trump was receptive to a nuanced discussion. He suggests a counter-argument – imposing tariffs on US service imports, where the US holds a $20 billion annual surplus with Switzerland – would likely fall on deaf ears.
However, Switzerland isn’t without its defenses. The country’s export portfolio is dominated by highly specialized, often unique products like pharmaceuticals, watches, and precision machinery. Unlike commodity goods, these items face limited direct competition, allowing Swiss producers to potentially absorb and pass on tariff costs to US consumers. This dynamic could ultimately mean American consumers, rather than Swiss companies, end up footing the bill for Trump’s policies.
The Globalization Paradox: From Critics to Potential Beneficiaries
Interestingly, Trump’s protectionist stance presents a curious irony. Many of the globalization critics who once advocated for import restrictions as a path to economic success – mirroring strategies employed by Japan and other Asian nations – now find themselves questioning whether Trump is inadvertently implementing their policies. “I never thought that a highly developed industrial country like the United States would fall back on as high tariffs,” Rolf remarked, highlighting the unexpected turn of events.
Evergreen Context: The History of Trade Protectionism – Throughout history, nations have oscillated between free trade and protectionist policies. From the mercantilism of the 17th and 18th centuries to the Smoot-Hawley Tariff Act of 1930 (widely blamed for exacerbating the Great Depression), the debate over tariffs has consistently centered on balancing domestic economic interests with the benefits of international cooperation. Trump’s approach represents a significant departure from the post-World War II consensus favoring free trade, raising concerns about a potential unraveling of the global trading system.
The Risks of Artificial Economic Intervention
Professor Rolf cautions against artificially manipulating trade patterns. He emphasizes the importance of specialization, noting that Switzerland excels in goods while the US dominates in services. Attempting to artificially correct this imbalance through tariffs, he argues, will inevitably harm the US service sector, leading to job losses and lower wages. “A country is not a large company,” Rolf stated. “The American President fails to recognize this.”
The EU’s experience with proposed digital taxes on US companies serves as a cautionary tale, demonstrating the potential for swift and forceful American retaliation. The long-term consequences of such interventions, Rolf warns, are likely to be undesirable economic side effects and increased global instability.
As Switzerland navigates this complex landscape, the Federal Council is attempting to negotiate a “deal” with Washington. However, Professor Rolf remains skeptical, pointing to the EU’s experience and the potential for Trump to misrepresent any agreements to his voter base. Ultimately, he believes Swiss industry must prepare to absorb the costs of higher tariffs and focus on reinforcing the unique value proposition of “Made in Switzerland” products – particularly in research and development.
The situation remains fluid, but one thing is clear: Trump’s evolving tariff strategy represents a significant challenge to the global trading system and demands careful consideration from businesses and policymakers alike. Stay tuned to archyde.com for ongoing coverage and expert analysis of this developing story. For more in-depth reporting on global economics and breaking news, explore our economic news section.
