Trump imposes a 145%punitive tax on China, Beijing reacts by blocking rare earth exports worldwide. And Switzerland suddenly finds itself at the heart of the fight for critical raw materials.
06.05.2025, 05:3206.05.2025, 05:32
Othmar von Matt / CH Media
The White House describes as “historic” the agreement on the raw materials it has concluded with Ukraine. At the same time, US President Donald Trump eagerly reaches out to Greenland. The two countries have one thing in common: Critical raw materials, in particular rare earths. In Greenland as in Ukraine, there are important deposits of what is considered to be “gold from the future”.
The ascent to the presidency of Trump marked the start of a global struggle for raw materials. On the one hand, the American president wants the United States to obtain control of rare land deposits. On the other hand, he caused a global shortage by imposing punitive customs duties in China in the amount of 145%. As a countermeasure, China has stopped exports of rare land and products containing them. And this, to all countries, including Switzerland.
A problem for Switzerland
This stop is a problem, Because China has a quasi-monopoly on rare earths. In 2024, 70% of their extraction took place in China. And the Chinese market share is often higher with regard to products refined with rare earths. For example? The magnets, which are used in planes, wind turbines and military equipment. They must be resistant to temperature and for that, you need samarium, one of the 17 metals that are part of the rare earths.
Switzerland feels the consequences of stopping Chinese exports. “Hundreds of Swiss companies should be affected by this measure,” says Jean-Philippe Kohl, vice-director of Swissmem, the association of Tech industry. Swiss companies certainly only import small quantities of rare earths in raw form-about 100 kilograms per year-but these come mainly from China. The extent of the problem is different for refined products: Switzerland imports 174 tonnes per year.
The fact that it mainly does it via the European Union could pose an additional problem, fears Swissmem:
“The EU has no free trade agreement with China. It could therefore be that Swiss companies suddenly have to wonder: “How can we get EU magnets with rare earth from China?” “
Jean-Philippe Kohl.
«Risque political climbing “
For Jean-Philippe Kohl, the situation is very fragile. He continues:
“The uncertainties are large. There is a risk of political escalation. If China systematically applies export restrictions against all countries, this will cause short and medium term disturbances. ”
Switzerland is poorly prepared for disturbances of this type. On December 13, 2024, the Federal Council adopted a report on “the supply of Swiss mineral materials for the energy transition”. But there is nothing to read on a dramatic shortage of critical raw materials and rare earths, as it could occur with the presidency of Trump.
We can only read the following sentence:
“In recent years, geopolitical tensions and environmental aspirations have led the major economic blocks that are the United States, the EU and China to seek to strengthen the security of their supplementary raw material supplies.”
The nonchalation of the report is incomprehensible for Swissmem.
“The Federal Council adopted the Seco report almost on the eve of Donald Trump’s new customs diet”
Jean-Philippe Kohl
He underlines: “We had to take the electoral promises of Donald Trump more seriously. When a possible tsunami is imminent, we must not ignore the negative scenarios-namely that other states, in particular China, react to customs duties of the United States. “
Switzerland “Gets off game”
The national councilor of the Elisabeth Schneider-Schneiter center is even more critical. It was she who, in 2020, asked for a report to the Federal Council on the threat of shortage of critical raw materials and rare earths. Today, she is disillusioned. “There is a global political struggle around rare earths”, she said, “only Switzerland considers that there is no need to act. We put ourselves off and endanger our security of supply ”.
Economic circles believe that the Federal Council has a duty to be fulfilled. “As these are sovereign decisions of China, it is up to the policy to play,” says Jean-Philippe Kohl. And add:
“Switzerland should try to obtain derogations from export to diplomatic level. By doing so, she will have to emphasize that she will not act like a hub. ”
The fact that the Minister of Foreign Affairs Ignazio Cassis went to China at the end of April and met the Minister of Foreign Affairs Wang Yi there is an “important sign” for Swissmem. This shows, according to Jean-Philippe Kohl, that “we are not part of a block and that we want to trade with everyone and suppress obstacles”. And to recall:
“Switzerland has long maintained good diplomatic relations with China and is working to develop the free trade agreement”
Jean-Philipppport cabbage, vice-decector’s swistenmem.
What does the State Secretariat respond to the Economy to criticism that he did not take the problem sufficiently seriously? “The Seco and the offices concerned intensively looked into this theme and have drawn up an inventory of existing challenges,” he wrote. The SECO provides, among other things, to analyze and regularly update import and supply data. The collaboration between the institutions concerned must also be reinforced. “We want to increase transparency in the raw materials sector,” he concludes.
Translated and adapted from German by Léa Krejci
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