US Tariffs: scienceindustries calls for a bilateral economic agreement

scienceindustries has taken note of the additional 12.5% tariffs announced by the US Administration under the Section 301 measures. It is regrettable that the Office of the United States Trade Representative (USTR) did not give sufficient consideration to the Swiss legal framework presented by the State Secretariat for Economic Affairs (SECO) and to the existing measures in place to combat forced labour. At the same time, scienceindustries welcomes the inclusion of the outcomes of the Joint Statement as a positive signal for continued dialogue. The announced tariffs underline the importance of swiftly concluding a bilateral economic agreement between Switzerland and the United States.

“Tariffs create no winners. They increase the cost of products, disrupt supply chains and ultimately affect businesses, consumers and patients alike. This makes it all the more important to clear the way for a bilateral economic agreement,” said Stephan Mumenthaler, Director of scienceindustries.

Reliable framework conditions for business

The United States is Switzerland’s second most important export market after the European Union. For the export-oriented chemical, pharmaceutical and life sciences industries, additional trade barriers create uncertainty and undermine the international competitiveness of Switzerland as a business location.

A bilateral economic agreement would provide reliable framework conditions, facilitate investment and strengthen economic cooperation over the long term. In an increasingly geopolitically driven environment, predictable trading relationships are more important than ever.

US companies and consumers will bear the costs

The additional tariffs will not only affect Swiss exporters. Tariffs act as an additional tax on imports, increasing the cost of intermediate goods as well as key industrial and healthcare products on which the US economy depends. Pharmaceuticals, along with numerous raw materials and intermediate products used in their manufacture, are currently exempt from these measures. The chemical, pharmaceutical and life sciences sectors are characterised by closely integrated transatlantic value chains. Trade barriers increase costs throughout the supply chain without improving security of supply or strengthening innovation. Depending on the product, these additional costs will ultimately be borne primarily by US companies, healthcare providers, consumers and patients.

A clear commitment against forced labour

scienceindustries is firmly committed to the global fight against forced labour. Swiss companies already comply with high international standards on human rights and supply chain due diligence. Sustainable progress is best achieved through international cooperation, shared standards and rules-based trade.

Continuing bilateral dialogue

Even following the announcement of the tariffs, dialogue between Switzerland and the United States remains the right approach. The swift conclusion of a bilateral economic agreement would strengthen supply chain resilience, encourage investment and provide both economies with stable and reliable framework conditions over the long term.

Further information:

Stephan Mumenthaler, Director

Tel. 079 593 91 63, stephan.mumenthaler@scienceindustries.ch

Erik Jandrasits, Head of International Trade

Tel. 079 473 66 33, erik.jandrasits@scienceindustries.ch