EU Confronts Trump Tariffs, Swiss Franc Plays Key Role

Impact on EU Exports and Countermeasures

Swiss-based monitoring service Global Trade Alert estimates that these derivative products account for approximately $20.3 billion in EU exports, on top of around €8 billion worth of the metals themselves. In response, the EU is considering reactivating countermeasures that were previously implemented, which in 2018 targeted $6.9 billion in U.S. imports, with additional measures scheduled to automatically reapply on April 1 unless a qualified majority of EU member states decides otherwise.

Trade Negotiations and Policy Uncertainty

European Trade Commissioner Maros Šefčovič noted that the U.S. appears unwilling to engage in talks to avert these tariffs, prompting the EU to prepare responses aimed at safeguarding its businesses, workers, and consumers. Meanwhile, EU Director General for Trade Sabine Weyand has expressed uncertainty regarding the exact scope of the new measures and the treatment of derivative products, leaving room for further negotiations. The Commission remains open to discussions with U.S. counterparts to resolve these issues.

Swiss Franc and Currency Dynamics

Although the primary focus is on EU trade, investors are also monitoring the Swiss franc closely due to its significant role in global currency dynamics. As a benchmark for stability in European financial markets, the performance of the Swiss franc can impact trade competitiveness and pricing. Fluctuations in the franc are being watched carefully, as they can either mitigate or exacerbate the effects of these new tariffs on EU exports.

Conclusion

With new U.S. tariffs set to hit EU aluminium and steel imports at unprecedented levels and potential countermeasures on the horizon, the trade dispute is poised to reshape global trade flows, while the Swiss franc remains a critical indicator of market stability and competitiveness in the region.