Swiss Expect US Tariffs to Hit Tax Revenue From Next Year

(Bloomberg) — Switzerland’s government expects high US tariffs to impact its revenue from value-added tax from next year as the levies weigh on growth.

“Further effects on receipts are to be expected with a longer lag,” the Bern-based executive said in a statement on Wednesday.

The US have slapped a 39% levy on many exports to America on Switzerland, which took effect in August. As attempts by Bern to secure a lower rate have failed so far, the government cut its growth forecast for next year to just 0.9%, down from 1.2%.

The government also said that for this year, Switzerland is set to report a budget deficit of just 0.6 billion francs ($750 million). That’s narrower than the originally budgeted shortfall of 0.8 billion francs. The change is due to slightly higher income, according to the statement.

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