Swiss President Karin Keller-Sutter has indicated a cautious outlook on the possibility of securing a tariff deal with US President Donald Trump in 2025, stating that the outcome is entirely dependent on the American leader's approval. Her remarks come amidst heightened trade tensions following the imposition of significant US tariffs on Swiss goods earlier this year.
Escalating Tariff Landscape
In August 2025, the United States implemented a substantial 39% tariff on Swiss exports, a move that followed an initial 31% tariff announced in April 2025. This decision was justified by President Trump, who cited the considerable US trade deficit with Switzerland, reported to be Sfr38.5 billion (£35.8 billion) in the previous year. The 39% tariff rate is notably higher than those applied to other major trading partners, such as the European Union (20%) and the United Kingdom (10%), placing Swiss exporters at a significant competitive disadvantage.
Swiss Response and Economic Impact
The Swiss government has actively pursued negotiations to mitigate the impact of these tariffs, proposing a package of investment pledges and measures aimed at reducing the US deficit. However, President Keller-Sutter, who also serves as Switzerland's Finance Minister, faced domestic criticism for her handling of a phone call with President Trump in late July, which preceded the tariff hike. Trump publicly commented that she 'didn't want to listen' to his concerns regarding the deficit.
The tariffs, while affecting less than 10% of total Swiss exports, have severely impacted specific sectors, particularly machinery manufacturers. Conversely, pharmaceutical products and gold have been exempted. The economic repercussions have been tangible, with Swiss exports to the US experiencing a drop of over 20% in the first month after the levies took effect. This downturn led the KOF Swiss Economic Institute to downgrade its growth forecast for the country.
Diplomatic Efforts and Future Prospects
In an effort to address the escalating trade dispute, President Keller-Sutter traveled to Washington in August 2025. However, during her visit, she met only with US Secretary of State Marco Rubio and did not secure a meeting with President Trump or his top trade officials. Subsequently, Swiss Economy Minister Guy Parmelin assumed responsibility for the ongoing trade negotiations with the United States.
Looking ahead, there is anticipation that a potential meeting between President Trump and Swiss officials at the World Economic Forum (WEF) in Davos in January 2026 could offer a new avenue for dialogue and a possible resolution to the tariff situation. Despite Switzerland's unilateral abolition of all industrial tariffs as of January 1, 2024, allowing 99% of American goods to enter duty-free, the current protectionist measures from the US continue to strain bilateral trade relations.
5 Comments
Stan Marsh
While the US trade deficit with Switzerland is undeniable, these high tariffs seem disproportionate. There must be a less damaging way to address the imbalance, especially given Switzerland's own tariff reductions.
Eric Cartman
Protectionism only hurts everyone. This will backfire on the US.
Muchacho
How can the US justify this when Switzerland removed its own tariffs? Hypocrisy!
Stan Marsh
The diplomatic efforts seem to be hitting a wall, with the Swiss President unable to meet Trump directly. While the US might feel justified in its stance, a lack of high-level dialogue risks escalating the dispute unnecessarily.
Kyle Broflovski
The tariffs clearly target specific Swiss sectors, showing a strategic approach from the US. Yet, excluding pharmaceuticals and gold indicates a selective pressure tactic rather than a blanket economic protectionism, which complicates the narrative.