World-System (1950-2025) Switzerland, the US and Trump Tariffs


Switzerland's (CH) Splendid Geopolitical Isolation was shattered last week as the Trump II Administration imposed 39% Tariffs on most Swiss imports (Pharmaceuticals were exempt for the time being). ChatGPT reports that there were three main reasons: (1) Trade Imbalances, (2) Lack of "Reciprocity" in Terms of Trade and (3) a Breakdown in Ongoing Negotiations (see more detail in the Notes below). What's going on  between Switzerland (CH) and the US?

In terms of my State Space Models (see the Boiler Plate), Geopolitical linkage between the US and Switzerland would not be beneficial for Switzerland. In the graphic above, using the US_LM model as input would result in immediate collapse; using the USL203 model as input would result in a future of unstable cycles. Switzerland needs to keep it's Geopolitical distance from the US and conduct Business-as-Usual (BAU) as much as possible. If that is not possible, taking a Random Walk (RW) to find a better attractor path with other Geopolitical partners would also be better.

You can run the USL203 model here; the DE_LM model here; the US_LM model here and the CH_LM BAU model here. 

In future posts I will investigate other Geopolitical linkages for Switzerland. For more information about the Economy of Switzerland, see the Wikipedia page here.


Notes


 

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