Aug, 1st -- Swiss National Day and this year at the same time a stormy tariff-news headline from the USA: as it currently seems that goods originating from Switzerland will be taxed at a spicy rate of 39% when they cross the US-border. So, overall a great reason to wish all inhabitants of this beautiful country a "Grüezie Wohl!" and also a good opportunity to see the perspective and issues and chances for the comparatively small but in many aspects unique and great country.

Sure, Switzerland benefited from the changes (some say decline) of other nations and the neighbors especially for decades: the steady influx of the high-potentials and the already-successful from France, Italy, Austria and Germany, respectively (which are with their French, Italian and esp German language per se native-speakers in the Confederation of Cantons) and many other countries like Sweden, UK, Spain changed the skills of the population to the better -- some say, in several aspects to the best. The quantitative change from 5mio inhabitants in 1960 to more than 9mio in 2024 is easy to measure -- a plus of 80%. But it were especially the qualitative changes that propelled the small average country to the top of the list when it is about economic product per capita (°1) or several other criteria (intelligence, wealth per person, most innovative country (Global Innovation Index) etc). This is the one of the two reasons for the 39%-attack of Trump (°2) and the other is the (some say, not unfounded) anger about the strength of big-pharma -- the main economic-product and export-article of Switzerland with a share of ~25%.

There is no way to understand the overall tariff-actions and the (some say very clever and positive) MAHA-movement lead by Robert F. Kennedy Jr. (Secretary of Health) different. Swiss watches and jewellery are something like a bycatch that is hit by the pragmatic taxation-approach of the USA -- products that create a high profit for Switzerland and might have low effectiveness but at least dont come with a long and cryptic package-leaflet --, but the main shoot is directed to the Pharma-industry.

However, not to agree to a "deal" under pressure as created by the Trump-lead US-government for any counter-party, is probably the correct way to go for Svizzera. The mistake made by the EU just a week ago to agree to absurd "investment" and "purchase" sums -- without knowing the price (USD-value, LNG-price, investment details) -- just to negotiate down the headline-taxrates (15%) is a reminiscent to an ancient poll-tax. It is probably not a good advice and also of not much help to tighten the ties with this (EU-)bloc. Instead, there are other opportunities arising in the east and southern-hemisphere. And although a lot of porcelain was crushed by Suisse in the fairway of the western treatment of these possible partners in the last 5 or even 10 years, it might be the right time to remember the neutral and unbiased roots of the Confederation Helvetica (CH) and proceed accordingly.

So, overall there are many obstacles ahead, yes. But it is not the first time in the Confederations history that times were not easy and so it has to be once again and Plus Ultra: Hopp Schwiiz!

°1) We can exclude Ireland & Luxemburg here easily as the reason for their similar or even higher economic product per person is not their outstanding creativity and productivity but their position as capital-collection points for IP-fees for US-tech-companies in Europe.

°2) Make America Great Again implies greater than others and this could be reached by deterioration of the competitor as well.

* Ad 2025-08-03: * The risk the EU has taken for the next three years, just to "negotiate" down the news-headline tax-rate from 30 to "just" 15% becomes obvious and scary when just four facts are taken into account:

• the price for USD750 billions in LNG-purchases is not specified: this is not a purchase but a poll-tax;
• the price and details for USD40 billions in "AI chip"-purchases is not specified: this is not a purchase but a poll-tax;
• the details for the USD600 billions investment in the USA is not specified: this is not an investment but a poll-tax;
• on top: the USD-price is not specified;

So, the total sum in fire here is approx USD1'400 billions, which equals almost the volume of goods exported from EU to USA in these three years (USD1'700 billions). So that means, if the goods received from the USA (chips, LNG, investment) are finally priced 25% above market- / fair-value, then the taxation of the EU-exports is effectively higher than 39%... I am taking bets here.

* Ad 2025-08-05: * It seems like extending the negotiations doesnt make much sense for Switzerland -- given we ended up with 39% after announced 31% + 90 days of negotiating, it is eventually a good time to leave it like that to not worsen the situation.