History may well remember that Donald Trump is indirectly responsible for the death of several dozen Swiss cows recently sent to the slaughterhouse by their owners. According to IP Lait (the Swiss Dairy Industry Interprofession), reducing herd sizes has become inevitable to avoid a collapse in prices as surpluses accumulate, and up to 25,000 cattle could be culled.
But what does the American president have to do with this situation? Since August 7, all Swiss products – except for pharmaceuticals and gold bullion refined in Ticino, whose status remains undecided – have been hit with a 39% tariff, more than double the 15% rate that the European Union agreed to with Washington.
The impact on milk has been immediate: Stocks in Switzerland have grown since much less of it has been processed into Gruyère AOP, the renowned cheese from the French-speaking region that is exported worldwide, and which previously accounted for 13% of its sales in the United States. Like many other Swiss export products – from Ricola candy to Swatch watches – Gruyère has been struck by the Trump administration’s tariffs, and almost overnight lost its American market. Its main competitor, the French Comté, is subject to only a 15% tariff. Anthony Margot, an affineur in Yverdon-les-Bains in the canton of Vaud, said, “We have cut back, reduced the amount of Gruyère we produce and therefore our revenue. The whole sector is suffering, the impact is serious, but we have seen other crises before.”
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