Posts archive for August, 2025

The U.S. President’s tariff tantrums have been headline fodder for months, with new hot takes sprouting faster than weeds in a neglected garden. I’ve stayed out of the fray—partly because I’m no trade guru, and partly because I didn’t want to add to the noise. But then, like a bolt from the blue, the President slapped a 39% tariff on Switzerland, timed perfectly for August 1, our sacred Swiss National Day. This unexpected blow has made the issue deeply personal, not just for me, but for all those whose lives and businesses are intertwined with global trade.

Global Trade: The Swiss Cheese of Systems

Global trade is the lifeblood of economies like Switzerland’s, but it’s got holes you could drive a truck through. Two big ones, to be exact: fragmented operations and risky payments.

Fragmented Operations: A $6 Trillion Ouch

The world hemorrhages about $6 trillion annually because global trade is a logistical patchwork quilt. Over half of companies are flying blind, lacking the data to navigate the maze of regulations, supply chains, and customs rules. It’s like trying to assemble IKEA furniture without the manual—frustrating, costly, and bound to end in tears.

Risky Payments: A $15.5 Billion Missed Opportunity

Digitalization could unlock $15.5 billion in benefits, yet small and medium-sized enterprises (SMEs) are starved for $2–5 trillion in trade financing every year. We’ve nailed the art of moving goods across oceans, but the financial and execution layers? They’re stuck in the fax-machine era, bleeding efficiency and squandering opportunities.

Trust: The Glue Holding It All Together

Global trade runs on trust—a fragile, gossamer thread woven through data, systems, and relationships. Without it, the whole machine seizes up. Businesses need rock-solid data—provenance records, supply chain logs, certifications—to prove a product’s origin, quality, and compliance. Dodgy data means delays, fines, or your shipment getting the cold shoulder at the border.

But here’s the million-dollar question, Mr. President: what trustworthy, universally accepted data are you using to calculate trade deficits and justify these tariffs? The World Customs Organization (WCO) calls for standardized, transparent data to facilitate trade and curb fraud. Yet, too many companies are stuck with systems so outdated they might as well be chiseling records on stone tablets.

Tariffs: The New Headache for Businesses

Not long ago, tariffs were a minor nuisance. Global trade agreements kept duties low, letting businesses focus on streamlining operations. But now? Protectionism is the new black, and trade wars between giants like the U.S., EU, and China have turned a product’s “nationality” into a make-or-break issue. Proving where your widget was born can mean the difference between a 15% tariff and a wallet-crushing 39%.

Take a Swiss company with a manufacturing arm in the EU and a sales hub in Switzerland. To export to the U.S., it must prove—beyond a shadow of a doubt—that its product hails from the EU to snag lower tariffs under trade agreements. No digital track-and-trace system? Tough luck. You’re stuck with the 39% tariff, and your profit margins are toast. A 2023 International Chamber of Commerce study found 60% of mid-sized firms lack the tech to meet these origin requirements, leaving them exposed to penalties.

Stablecoins: The Financial Firewalls We Need

The financial side of trade needs to stay above the political fray. Enter stablecoins—cryptocurrencies pegged to steady assets like the U.S. dollar. Unlike traditional banking systems, which can get tangled in sanctions or policy flip-flops, stablecoins offer a neutral, decentralized way to settle payments fast. They’re like the Switzerland of money—reliable, impartial, and immune to geopolitical mood swings. This is a beacon of hope in the turbulent sea of global trade.

Mr. President, It’s Personal

Global trade isn’t just charts and spreadsheets. It’s the livelihoods of millions, the survival of businesses, and the heartbeat of economies. Trust is the currency that keeps it humming, built on reliable data and bulletproof financial tools like stablecoins.

Enough with the half-baked measures. The time has come for governments, businesses, and innovators to team up and build a trade system that’s transparent, resilient, and doesn’t buckle under political whims. Only then can global trade be a force for prosperity, not a punching bag for policy grudges. So, Mr. President, let’s ease up on the tariff trigger finger—my Swiss chocolates are expensive enough as it is. The urgency of this need cannot be overstated.