Source: Fortune
Summary
The Trump administration is preparing to investigate Switzerland under Section 301, a trade enforcement tool. The investigation could damage America’s economic relationships and weaken the economy. The author argues that trade deficits alone do not indicate foul play and that Switzerland is a fair trading nation with no tariffs on industrial goods and significant investment in the US. The author questions why Washington would want to punish one of its best economic partners.
Our Reading
The announcement sounds familiar.
The Trump administration is using the same trade enforcement tool against Switzerland as it did against China. Switzerland has a trade deficit with the US, but once services are included, the imbalance is only $8 billion. The country is a fair trading nation with significant investment in the US, supporting nearly 400,000 American jobs. The investigation could damage America’s economic relationships and weaken the economy.
Washington is treating a fair partner like an enemy.
Author: Evan Null
