Switzerland is reducing its reliance on the U.S. following the imposition of high tariffs on Swiss exports by the world’s largest economy. With geopolitical tensions rising, the European nation is strengthening its ties to China and diversifying its economy.
The Swiss government is looking east for stability and diversification as it intensifies trade relations with China due to the record-high tariffs on exports imposed by the U.S. administration.
According to a joint statement issued on Friday, Swiss Foreign Minister Ignazio Cassis and his Chinese counterpart Wang Yi agreed to speed up the negotiations to upgrade the 2014 free trade agreement between their countries. The announcement came after the fourth round of a strategic dialogue held in Bellinzona, a town in southern Switzerland.
Switzerland looks to China as U.S. relations remain strained
The free trade agreement with China was the first such deal that China signed with a continental European country. Since then, trade volumes between the two nations have grown substantially, with Switzerland exporting high-tech goods, pharmaceuticals, and luxury products while importing electronics and industrial components.
Both governments said that modernizing the decade-old pact will help make bilateral trade “more predictable and sustainable” while promoting a more open and balanced form of globalization.
The Swiss economy has quickly felt the impact of the 39% tariffs imposed on exports by the United States in August, which is dependent on its advanced manufacturing and pharmaceutical industries.
Trade tensions between Switzerland and the U.S. have already affected the nation’s manufacturing and export sectors. The recent alignment with China comes as the Swiss government fails to make progress in negotiations with Washington over the tariff burden.
Swiss Foreign Minister Cassis emphasized that cooperation with China does not come at the expense of relations with Western allies. Cassis stressed the need for “predictable and balanced” globalization, saying: “We are committed to engaging with all partners constructively.”
