Latest News Roundup on a Wednesday in Switzerland
In a significant turn of events, Switzerland has managed to avoid a potential "customs catastrophe" with the United States, thanks to its proactive elimination of tariffs on industrial goods as of January 1, 2024. This move has made over 99% of US goods enter Switzerland tariff-free, countering the perception that Switzerland engages in unfair trade practices.
The announcement came after US President Trump threatened to impose a high reciprocal tariff rate on Switzerland, reaching up to 39%. However, the Swiss government vehemently denied any wrongdoing related to trade imbalances and emphasized its tariff-free stance towards US imports.
Switzerland is currently in the process of negotiating a trade deal with the US to further prevent such tariff escalations. The country aims to present a more attractive offer before additional tariffs could take effect.
Meanwhile, in a separate development, the city of Zurich has seen around 30,000 apartments become vacant each year. To secure an apartment quickly, one must act promptly, according to real estate expert Donato Scognamiglio. Some people in Zurich even resort to scanning obituaries daily to find vacant apartments, as mentioned by Scognamiglio.
In the realm of automobiles, car thefts have been on the rise in Switzerland, particularly in the southern and central regions, where there's been a 7 percent increase. French thieves have been stealing cars from dealerships in German and French-speaking Switzerland for several weeks. These car thefts sometimes result in car chases reminiscent of Hollywood movies, with the thieves taking risks and endangering road users and police forces during their escapes.
On a positive note, the real estate market in Switzerland has shown signs of growth. Raiffeisen Bank reports a 1.5 percent increase in the price of single-family homes for sale in Switzerland from April to June 2025. In the eastern cantons, house prices increased by 4.8 percent, while in central Switzerland, house prices jumped by 5.9 percent. The Lake Geneva region experienced a 2-percent hike in house prices.
Despite these challenges, Swiss political and economic circles almost unanimously believe that the country will be spared a "customs catastrophe." Economy Minister Guy Parmelin expressed confidence in this regard, and Rahul Sahgal, director of the Swiss-American Chamber of Commerce, stated that Americans have understood that Switzerland is not the right country to make an example of.
[1] - Source: Swissinfo.ch [3] - Source: The Local Switzerland
- The Swiss government's elimination of tariffs on industrial goods has led to discussions around the country's approach to business and finance in the context of politics and general-news, as it countered perceptions of unfair trade practices and avoided reciprocal tariffs from the US.
- In the arena of crime-and-justice, Switzerland has been grappling with an increase in car thefts, particularly in southern and central regions, raising concerns about safety and justice within the country and in its relations with neighboring countries.
