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It will also be necessary to produce in the United States to avoid 100% tariffs.

Switzerland Today

Dear Swiss Abroad,

The spotlight once again falls on Washington, where the White House has announced the latest blow in its trade war – a tariff decision closely watched by the Swiss pharmaceutical industry. For now, the situation is not catastrophic.

Elsewhere, today’s selection includes the close of parliament’s autumn session, the poor state of Lake Geneva’s water and rising tensions between France and Geneva.

Enjoy the read!

On Friday, the Federal Council said it wanted to tax electric mobility more heavily.
Today the Swiss federal government said it wanted to tax electric mobility more heavily. Keystone / Gaetan Bally

The autumn session of parliament ended today. The day before, the House of Representatives rejected the Swiss People’s Party initiative “No to 10 million Switzerland”, which called for strict immigration controls.

The debate was heated, with 115 speakers taking the floor. The Senate and voters still have to decide.

Also on Thursday, the Senate broke a taboo by approving a motion to tax foreign vehicles transiting through Switzerland without stopping. The proposed levy would vary according to traffic density, particularly on the north–south axis. The Swiss federal government opposes the measure, citing administrative hurdles. The House of Representatives has yet to debate it.

On Friday, lawmakers in the House approved two motions to strengthen the armed forces. One would allow former servicemen to return on a voluntary basis; the other would raise financial compensation for women enlisting. Both must still be examined by the Senate.

Because of the session, the Swiss federal government held its weekly meeting on Friday. Key announcements included plans to tax electric vehicles from 2030. Two models are under consultation: one based on kilometres travelled, the other on electricity used. The government also launched a consultation on “Lex UBS”, which would impose stricter capital requirements on the banking giant.

It will also be necessary to produce in the United States to avoid 100% tariffs.
It will also be necessary to produce in the United States to avoid 100% tariffs. Keystone / Gaetan Bally

In the trade war led by the United States, the missing piece has been revealed: tariffs on pharmaceutical products imported into the US will be set at 100%. President Donald Trump announced the measure on Thursday, effective from October 1.

Swiss exporters already face average US tariffs of 39% and the industry had long feared this move. Pharmaceuticals account for about half of Swiss exports to the US. However, Trump clarified that foreign firms with production sites in the US will be exempt. This means Novartis, Roche and Lonza, which all operate there, could be spared.

Even so, pressure remains. Washington insists on lower drug prices domestically – a move that companies could offset by raising prices elsewhere. “Prices can either fall in the US or rise in Europe – or be somewhere in between. Either way, it poses a problem for Switzerland,” said René Buholzer, head of Interpharma.

In Geneva, you need to be careful when approaching a school, and not just on the roads... in politics too.
In Geneva, you need to be careful when approaching a school, and not just on the roads… in politics too. Keystone / Salvatore Di Nolfi

Relations between Geneva and France are strained over the schooling of cross-border children. In Paris, members of both chambers of parliament have voiced outrage, threatening to boycott cooperation bodies.

In a joint press release, two Haute-Savoie deputies, the vice-president of the French Senate and the president of the Communauté des communes du Genevois denounced Geneva’s position as “contempt for cross-border institutions”. They warned that Geneva “underestimates the determination of French elected representatives and the history of our country”.

The dispute stems from a tense meeting between Geneva’s cantonal government, the French ambassador to Switzerland and the prefect of the Auvergne–Rhône–Alpes region. French officials claim Geneva had already prepared a statement insisting it would not change its position, despite the meeting being billed as a dialogue.

Back in 2018, Geneva decided to stop enrolling the children of Swiss nationals living in France, though a transitional arrangement allowed pupils already in Swiss schools (and their siblings) to continue. That arrangement will now end in 2026, affecting 329 children, most of them Swiss.

The waters of Lake Geneva are beautiful, but not necessarily pure.
The waters of Lake Geneva are beautiful, but not necessarily pure. Keystone / Laurent Gillieron

There’s a new threat in the waters of Lake Geneva. On Friday, the cantons bordering the lake reported traces of 1,2,4-triazole in drinking water at 0.7 micrograms per litre – seven times Switzerland’s legal limit.

The chemical is used in pharmaceutical and agrochemical products. Tests along the Rhône traced the source to Monthey’s chemical site, specifically Syngenta’s pesticide plant. Producers are now being urged to improve water filtration.

Officials stress there is no health risk. A French agency found the safe threshold to be 51 µg/L over six years – far higher than Swiss levels. Belgium, however, sets its limit at 4.5 µg/L.

Meanwhile, Lake Geneva’s perch stocks are thriving. Fish numbers have risen sharply since July, to the delight of fishermen and restaurateurs, though experts cannot yet explain the abundance.

Translated from French using DeepL/amva

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