Interview: U.S. tariff policy signals win-lose mentality: Swiss business leader

GENEVA, May 5 (Xinhua) -- The United States' tariff policy has created widespread uncertainty and reflects a confrontational approach to global trade, Robert Wiest, president of the Swiss-Chinese Chamber of Commerce (SCCC), said in a recent interview with Xinhua.

The United States has recognized that it has deindustrialized too much, Wiest said, adding that it is now trying to bring back jobs and industrial capacity by using tariffs, which are "a very crude tool."

Wiest, who recently returned from a 10-day business trip to Japan and China, criticized the tone and direction of the U.S. government's trade policy, calling it "definitely not very productive" because, up to now, it has not yet yielded a result. Instead, it has created uncertainty and alienated not only allies but also important trading partners, he said.

A recent SCCC newsletter described the ongoing tariff disputes as resembling "a negotiation that started poorly - and continues to unfold poorly."

According to Wiest, the United States could have approached the issue collaboratively by engaging allies and partners in constructive dialogue. But instead, it chose to open negotiations in a very aggressive manner. That signals a focus on a win-lose outcome, which is rarely conducive to successful talks, he said.

In a notable example, U.S. President Donald Trump imposed a 31 percent "reciprocal tariff" on imports from Switzerland - significantly higher than the 20 percent imposed on the European Union (EU) - before announcing a 90-day pause shortly thereafter.

"Switzerland was caught off guard by the level of tariffs imposed," Wiest said, adding that even more damaging than the tariffs themselves is the uncertainty they create for businesses.

Currently, a 10 percent tariff remains in effect. Coupled with the strength of the Swiss franc against the U.S. dollar, the cost pressures are making it more difficult for Swiss companies to compete in the American market, Wiest explained.

Exports are a cornerstone of the Swiss economy, accounting for approximately 80 percent of its gross domestic product. Of that, 55 percent is bound for the EU, 15 percent for the United States, and five percent for China.

With the U.S. market becoming less stable, Switzerland's bilateral treaties with the EU and its Free Trade Agreement with China are gaining in importance, he noted.

"The U.S. accounts for only about 13 percent of global trade," Wiest said. "Yes, it's a major market for Switzerland. But if it were to close off completely, there would be disruption for three or four years. After that, alternative markets could be developed to make up for the loss."

On the issue of U.S. tariffs targeting China, Wiest pointed out that China has made significant progress in diversifying its industrial base. In green technology - including solar panels and wind turbines - emerging markets such as the Middle East, Africa, and Latin America have become key destinations.

As a result, he said the U.S. tariffs on Chinese green tech exports will have limited impact.

China is also climbing the value chain beyond low-cost manufacturing, he noted. In the electric vehicle sector, for example, China has established a fully integrated value chain - from battery production to vehicle design, manufacturing, and global sales, Wiest said.

He added that China is becoming increasingly attractive to Swiss industries such as machinery, pharmaceuticals, and luxury watchmaking, citing an improving business environment and growing opportunities.

The SCCC, he said, will continue to strengthen ties with both the Swiss and Chinese governments to support its members amid ongoing global trade uncertainties. ■