Swiss Officials Report Progress in US Tariff Talks After High-Level Meetings

Swiss Officials Report Progress in US Tariff Talks After High-Level Meetings

Swiss ministers have described recent discussions in Washington as "very positive," raising hopes for a reduction in the 39% tariffs imposed by former US President Donald Trump on Swiss exports-the highest rate levied on any European nation. US officials indicated that Switzerland's acknowledgment of its trade deficit could pave the way for a "meaningful reduction" in duties.

Gift Diplomacy and Private Sector Influence

Efforts to ease tariffs gained momentum after a private business delegation, including executives from Rolex, Richemont, and gold refiner MKS, met with Trump in the Oval Office on November 4. The group presented gifts, reportedly including a Rolex gold watch and an engraved gold bar. While neither company confirmed the details, a White House official later verified the items were received.

Trump, who initially dismissed Swiss President Karin Keller-Sutter's earlier appeals-calling her "a nice woman, but she did not want to listen"-now suggests a deal is in the works to lower tariffs, though no specific figure has been set. "We're working on something to help Switzerland," he told reporters.

Economic Strain and Industry Pressures

The 39% tariffs, imposed in August 2024, have severely impacted Swiss exports, with third-quarter tech shipments to the US plummeting 14.2% year-over-year. Swiss Economics Minister Guy Parmelin noted that negotiations had "clarified almost everything," while industry leaders warn of potential staff furloughs if relief fails to materialize.

In exchange for tariff cuts, Swiss pharmaceutical firms have pledged to expand US production facilities, and Swiss International Airlines may shift orders from Airbus to Boeing-a move aligning with Trump's "America First" policies.

Leveraging Personal Connections

Switzerland's diplomatic push extends beyond trade officials. FIFA President Gianni Infantino, a Swiss national and longtime Trump ally, visited the Oval Office in August with the World Cup trophy, declaring Trump "a winner." Infantino's upcoming announcement of a FIFA "world peace prize" in Washington on December 5 has sparked speculation about potential recipients-including Trump himself.

Analysts suggest Infantino's influence, combined with high-profile gifts and corporate concessions, may have softened Trump's stance. Swiss negotiators now aim to align their tariff rate with the EU's 15%, though no formal agreement has been reached.

"Supplies have stabilized, but conservation remains essential."

Swiss Trade Negotiator Helene Budliger Artieda (paraphrased)

Next Steps

Swiss officials will continue discussions in Washington, with a potential resolution expected before year-end. The outcome could determine whether Swiss firms-from luxury goods to pharmaceuticals-avoid further layoffs amid prolonged trade barriers.