Swiss EU rethink

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Of all the tariff bombs thrown by Donald Trump, the 39% rate lobbed at imports from Switzerland is among the most devastating.

So all of Switzerland is watching anxiously as its president, Karin Keller-Sutter, makes a dash to Washington to try and secure a reduction in the threatened levies.

The omens don't look good with her having secured a meeting so far today with Secretary of State Marco Rubio, rather than any US trade officials or Trump himself.

Back home, the shock has set in motion discussion of another contentious topic: the Swiss relationship with the European Union.

WATCH: Paula Doenecke reports on Keller-Sutter's trip to Washington on Bloomberg TV.

The EU is Switzerland's most important trading partner, one that with a few exceptions remains tariff-free. As such, it's the only market able to offset the impact of US levies on Switzerland's export-dependent economy.

Pressure is already coming from companies like medical-device maker Ypsomed, which plans to move some production to Germany to offset the pain.

If others follow, Switzerland's historically low unemployment may rise, potentially prodding voters in a more EU-friendly direction.

There are a lot of steps between now and any future bloc alignment. The Swiss aren't due to vote on a new set of agreements with the EU until 2027 at the earliest.

But it's hard to overestimate how unsettling and unexpected Trump's aggressive tariffs have been for a nation known for its calm predictability.

Faced with the changed geopolitical reality, Swiss voters might just opt to surprise. — Levin Stamm

Boxes of Lindt chocolate at a supermarket in Geneva. Photographer: Andrew Kravchenko/Bloomberg

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