Trump strike hard: Economic storm wins Europe
In Bern, this announcement had an impact on Electroshock: Donald Trump hits hard by saving 39 % of customs duties on Swiss products, while the confederation included in the rank of economic goal. Pretexting “unbearable” trade deficit accuses Switzerland of the “theft” of the United States. A leading attack that distributes Swiss neutrality and throws government as markets in uncertainty. But behind this brutal offensive is the interrogation necessary: how far will Trump go in the economic war?
In short
- Trump deposits 39 % of taxes in Switzerland: a trade war that shakes Europe.
- Transferred neutrality, shaken markets: Switzerland collects Trump’s shock.
- This economic coup DE Power represents a brutal turning point in transatlantic relationships.
Trump starts a trade war and Trinque Switzerland
While its administration has just published a strategic report on the crypt confirming the opening of innovation, Trump will hit Switzerland from a customs attack in the name of a commercial imbalance of 40 billion francs. A decision that is less part of economic logic than in a protectionist withdrawal continuous with its nationalist rhetoric: no one is safe.
The Swiss reaction has not been long. The Federal Council expresses its “great regret” and tries to get a stay before entering the sanctions scheduled for 7th August.
Meanwhile, Swiss companies wonder: How to absorb an extra for such a size without losing their leg on the US market? This unilateral decision is a new escalation in the commercial crisis between Trump and Switzerland, whose problems are largely exceeded by a simple customs dispute.
The first victims of commercial offensive launched by Trump have not been in arrival for a long time. In the first line, the watchmaker, the national gem, will live a dark year. The 39 % tax that Trump imposed on exports to the United States could sweep months after the Kavid.
Machine tool manufacturers also sound an alarm. Their already fragile margins are likely to collapse under pressure from Trump’s economic decisions. Finally, the reaction was immediate on the stock market. Since the opening, the tracks have risen by 2 %, which is a clear sign of market nervousness.
Economy under voltage: a domino effect that can be expected
It hides a much greater risk behind this brutal measure. Switzerland, long supported by regular growth and solid exports, sees its economic model.
Several economists are an alarm. Annual growth could drop from 0.3 % to 0.6 %. The Earth’s wound also depends on international. And if the pharmaceutical industry was also affected, it could still be spared, the contraction could increase up to 0.7 %, even behind them.
What is most worried about is uncertainty. Nothing gets up with Donald Trump. The decision may encounter a simple whim, the statement is sufficient for the markets to argue. In this climate of permanent unpredictability, Swiss societies seek to predict, organize and, above all, protect their future.
Europe, although threatening Washington by the economic war, remains surprisingly quiet. However, the case goes far beyond the bilateral framework. It raises a fundamental question: if Switzerland, neutral and conciliatory can be treated in this way, which will be another? The domino effect could well rework the rules of international trade in Trump Sauce.
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Evariste, fascinated by Bitcoin since 2017, has not stopped documenting on this topic. If his first interest focused on trading, he now tries to actively understand all cryptocurrency progress. As an editor, he tries to permanently provide high quality work that reflects the condition of the sector as a whole.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.