Swiss Industry Leader Calls for Diplomatic Engagement After US Tariff Announcement

In response to recent tariff announcements by the United States government, Martin Hirzel, President of the Swissmem industry association, has called for active diplomatic engagement from the Swiss government. Hirzel expressed disappointment that the US, a nation historically significant in promoting global free trade, has chosen to impose a 31% tariff on Swiss products. He emphasized the need for immediate action, suggesting that Swiss President Karin Keller-Sutter should visit Mar-a-Lago to directly address these issues.

During an interview, Hirzel remarked that the tariffs are not only detrimental but also counterproductive, penalizing Swiss firms for their competitiveness. He drew parallels between the current situation and the past challenges faced by Swiss industries, particularly referencing the impact of the 2015 Swiss Franc shock. Despite the tariffs, Hirzel noted a resurgence of entrepreneurial spirit among Swiss companies, with many exploring innovative ways to adapt to this new landscape.

Hirzel articulated that while the current trade environment is challenging, it also presents an opportunity for Swiss firms to enhance their offerings and explore new markets. He highlighted the absurdity of being punished for outperforming US industries, noting that Switzerland exports significantly more industrial goods to the US than it imports.

In discussing potential actions, Hirzel suggested that if given the opportunity to meet with President Trump, he would stress the positive aspects of Swiss-American trade relations, including Switzerland's elimination of industrial tariffs and its status as a major investor in the US economy. He criticized the methodology behind the tariff calculations, which he believes are based on flawed assumptions regarding trade imbalances.

Hirzel also proposed that Switzerland could assist the US in developing a dual vocational training system, a model that has proven successful in Switzerland. He believes this could be beneficial for the US as it seeks to reinvigorate its manufacturing sector.

While acknowledging that some Swiss companies already produce in the US, Hirzel pointed out that many find it economically unfeasible to shift large-scale operations. He warned that closed borders and restrictive policies could lead to a shortage of goods and services, ultimately harming both economies.

Addressing the competitive landscape, Hirzel indicated that many Swiss firms are facing heightened competition from European counterparts who are subject to lower tariff rates. He stressed the importance of maintaining a robust presence in global markets while also advocating for swift completion of free trade agreements with emerging markets, including China, India, and various countries in South America.

Additionally, he noted that while some Swiss companies are currently struggling due to economic slowdowns in major markets, particularly in Europe and China, the Swiss industry is resilient. The call for extended short-time work arrangements reflects the ongoing challenges while highlighting the industry's adaptability over the long term.

In conclusion, Hirzel voiced his support for a diplomatic approach rather than retaliation against the US tariffs, urging the Swiss government to prioritize dialogue and negotiation to address trade imbalances. He believes that engaging directly with US leadership is essential to mitigating the impact of these tariffs and strengthening bilateral trade relations.