In a swift response to impending trade challenges, Switzerland’s President Karin Keller-Sutter is leading a high-level delegation to Washington on Tuesday.
The trip was propelled by last week’s alarming announcement that U.S. tariffs on Swiss goods would climb to a staggering 39% effective Thursday.
This tariff rate far exceeds those imposed on goods from the European Union, which stand at 15%, and is nearly quadruple the tariffs applied to British exports.
Industries that are cornerstones of the Swiss economy, such as chocolate, machinery, and watchmaking, have raised significant alarms regarding the steep tariffs.
Previously, when President Donald Trump introduced his “Liberation Day” tariffs in early April, Switzerland was set to face a 31% tariff.
The urgency of this newly elevated rate has prompted the Swiss government to seek immediate discussions with U.S. authorities in hopes of ameliorating the situation.
Keller-Sutter, who also holds the position of finance minister, faced criticism in Swiss media over a prior phone call to Trump, which took place just before a deadline on tariffs expired on August 1.
Her delegation included Economy Minister Guy Parmelin as they pursue a path to negotiate more favorable trade terms.
In remarks made to CNBC, President Trump referred to the earlier communication with Keller-Sutter, suggesting a disconnect in their dialogue.
Trump stated, “the woman was nice, but she didn’t want to listen,” and highlighted a trade imbalance, claiming the U.S. is facing a $41-billion deficit with Switzerland.
This figure contrasts with data from the U.S. Census Bureau, which shows a trade imbalance of $38.3 billion with Switzerland last year.
Swiss officials have pointed out that American imports face minimal tariffs when entering Switzerland, underlining the country’s status as the sixth-largest foreign investor in the U.S. and the top investor in research and development.
Ivan Slatkine, head of the Federation of Romandie Enterprises, commented on the severe implications of the 39% tariffs, describing it as a “hammer blow for the entire Swiss economy.”
While certain luxury watchmakers may suffer less directly due to their unique market positioning, many companies reliant on the American market, particularly in the sectors of airplane parts, machinery, and mid-tier watchmaking, are set to bear the brunt of these tariff hikes.
Slatkine remarked that the situation is particularly dire for those companies competing against rivals in the European Union, whose export tariffs are significantly lower.
The delegation’s visit comes on the heels of a special meeting held by Switzerland’s executive branch, the Federal Council, which emphasized its eagerness to engage in dialogue about tariff negotiations.
Following consultations with Swiss industry leaders, the Federal Council is prepared to enter a new phase of discussions with U.S. officials.
The statements released indicate that Switzerland aims to present a more appealing offer that acknowledges U.S. concerns, all while addressing the ongoing tariff crisis.
Under the newly imposed U.S. tariffs, Swiss exporters will find themselves facing one of the highest duties globally, surpassed only by those from Laos, Myanmar, and Syria, which have tariffs between 40% and 41%.
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