For Switzerland, the stakes in this clash are perilously high. While not a target of the initial tariff list, the Swiss economy is deeply intertwined with both the EU and US markets. Von der Leyen's speech highlighted the recent agreement with Switzerland as a beacon of stability, yet a trade war of this magnitude would inevitably send shockwaves through the Swiss export sector. A 'new independent Europe,' as called for by the Commission President, implies a continental fortress that Switzerland must navigate carefully.
If the EU activates its CHF 86 billion retaliation package, global supply chains will fracture, impacting Swiss logistics and multinational corporations. The 'dangerous downward spiral' von der Leyen warns of is not abstractāit threatens the predictability that the Swiss economy relies upon. As Davos turns into 'Little America' this week, Bern will be watching closely, knowing that when elephants fight, it is the grassāand the smaller, neutral nationsāthat often gets trampled.