Swiss Launch Charm Offensive to Reduce Devastating Trump Tariffs
Swiss officials are actively engaging with U.S. leaders to address the significant tariffs imposed by President Donald Trump on Swiss exports. The current tariff rate stands at 39%, the highest in Europe, significantly impacting Swiss industry.
High-Level Talks in Washington
In recent negotiations, Swiss economics minister Guy Parmelin reported “very positive” discussions with U.S. officials. The Swiss delegation is acutely aware of their trade deficit and is looking to reduce tariffs meaningfully.
- Negotiations included gifts like a Rolex watch and a gold bar from MKS, a Swiss-based gold refining company.
- Initial discussions held by Swiss President Karin Keller Sutter did not yield results, with Trump mentioning she was a “nice woman” but not receptive to listening.
Impact of Tariffs
Since the tariff hike in August, Swiss tech exports to the U.S. have plummeted by 14.2%, creating urgency for a resolution in trade relations. This downturn has affected various sectors, especially luxury goods, gold, and commodities.
During a recent visit to the Oval Office, Trump met with Swiss business leaders, including Jean Frédéric Dufour of Rolex and Johann Rupert from Richemont, a luxury goods manufacturer. Dufour had previously interacted with Trump at the U.S. Open tennis final, reinforcing their business ties.
Toward a Possible Agreement
With discussions advancing positively, there are hopes that the tariff rate could potentially decrease from 39% to 15%, aligning more closely with rates imposed by EU countries.
Swiss pharmaceutical companies are reportedly willing to invest in more production facilities in the U.S. as part of this potential agreement. Additionally, Swiss International Airlines is contemplating a shift to Boeing aircraft for future purchases.
- Potential reduction of tariffs: from 39% to 15%
- Investment from Swiss pharmaceutical companies in U.S. production
- Swiss International Airlines may pivot towards Boeing
The Role of Influential Figures
FIFA President Gianni Infantino, a Swiss citizen and a long-time Trump associate, could play a pivotal role in mediating these discussions. He has been urged by Swiss parliamentarians to leverage his relationship with the president to influence trade outcomes.
Infantino recently visited the Oval Office, presenting Trump with the FIFA trophy, enhancing his rapport with the U.S. leader. His upcoming announcement of a FIFA World Peace Prize in Washington on December 5th could also serve as an opportunity to reinforce diplomatic ties.
As negotiations progress, Swiss companies remain on edge, with some warning they may need to furlough staff if trade relations do not improve. The outcome of these discussions could have significant implications for the Swiss economy.
