Switzerland is stepping up efforts to convince the United States to reduce tariffs on Swiss products. The country has offered to buy more American weapons, energy products, and increase investments in the US in a fresh attempt to persuade Washington to lower import taxes.
The move comes after the US, under President Donald Trump, imposed a high tariff rate on Swiss goods, citing a trade imbalance between the two countries. The tariffs, among the highest applied to a Western ally, have already hit Swiss exports hard.
Swiss Offers Include Weapons, Energy, and Investments
Swiss officials have proposed several steps to improve trade relations. These include purchasing more American weapons and energy products such as liquefied natural gas and enriched uranium. In addition, Switzerland has promised to make new investment commitments in the US.
The negotiations have been led by Swiss economy minister Guy Parmelin, who is set to become federal president next year under Switzerland’s rotational system. Parmelin recently held meetings in Washington with US trade officials Howard Lutnick, Scott Greer, and James Bessent to discuss potential solutions.
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According to Rahul Sahgal, chief executive of the Swiss-American Chamber of Commerce, some progress has been made, but a deal is not expected immediately. Swiss authorities emphasize that these talks involve a “whole-of-government” approach, signaling that multiple departments are actively engaged in reaching an agreement.
Trade Talks Highlight Tensions
Trade discussions have highlighted ongoing tensions between the two nations. Earlier, a phone call between Swiss president Karin Keller-Sutter and President Trump failed to lower tariffs, with Trump later describing her as a “nice lady” who “didn’t listen” to complaints about America’s trade deficit with Switzerland.
Following the call, Keller-Sutter visited Washington in an effort to reverse the tariffs but returned without results. Swiss officials now describe a “whole-of-government” approach, combining efforts from economic, finance, and trade departments to strengthen their negotiating position.
Top business leaders have also joined the push. Jean-Frédéric Dufour, chief executive of Rolex, recently attended a high-profile US tennis event as a gesture of goodwill during this tense trade period. Meanwhile, the US has appointed a new ambassador to Switzerland, Callista Gingrich, who is expected to focus on trade issues as part of her agenda.
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Tariffs Already Affecting Swiss Exports
The US tariffs are already causing significant disruptions to Swiss trade. In August, Swiss exports to the US dropped sharply by over 22%, totaling around $3.9 billion. Swiss watch shipments alone fell by 16.5%, with declines reported across different regions and price ranges.
Other products, including cheese and chocolate, are also affected. Exporters are facing challenges as the tariffs make Swiss goods more expensive for American buyers. According to Jean-Philippe Bertschy, managing director at Swiss investment group Vontobel, the August export data delivered “an abrupt reality check” for Swiss businesses.
US trade figures show a goods deficit of approximately $38 billion with Switzerland last year. However, this balance has shifted in the first months of 2024, with Switzerland now recording a trade surplus with the US. Some officials note that part of the change is due to gold exports, which are exempt from tariffs. Temporary US tariffs on gold bars earlier this year caused market disruptions before being lifted.
Swiss officials continue negotiations in hopes of improving trade conditions. The ongoing talks underline the importance of the US-Swiss trade relationship, while Swiss businesses and officials navigate the direct impact of tariffs that have already begun affecting exports, investment plans, and the overall economic connection between the two countries.
