Switzerland’s top leadership is making a direct appeal to the White House in an urgent diplomatic effort to address a steep tariff imposed by the United States. President Karin Keller-Sutter and Economy Minister Guy Parmelin are in Washington this week to present what the Swiss government describes as “a more attractive offer” in a bid to ease mounting trade pressures and reduce the scale of newly announced US tariffs.
The visit comes shortly after US President Donald Trump imposed a 39 per cent tariff on Swiss exports last week. This figure far exceeds the previously floated 31 per cent tariff announced in April and is set to take effect on August 7. Trump cited the United States’ “huge” trade deficit with Switzerland as the key rationale for the hike.
The Swiss government confirmed on Tuesday that the objective of the high-level trip is to offer new terms that consider US concerns while aiming to bring down the reciprocal tariff rate. A cabinet meeting was held on Monday to assess how best to involve Parmelin’s department more directly in the negotiation process. According to individuals familiar with the discussion, there was consensus that his deeper participation made strategic sense.
Parmelin, who also serves as Vice President and belongs to the Swiss People’s Party, has openly signalled a readiness to revise the country’s offer. Over the weekend, he floated a proposal to increase Swiss investment in the US, with particular interest in American LNG imports as part of a broader trade concession framework.
Joining the delegation are Helene Budliger Artieda, State Secretary for Economic Affairs, and Daniela Stoffel, State Secretary for International Finance.
President Keller-Sutter, a member of the centrist Liberal Party, had previously engaged in a direct phone call with President Trump last Thursday. While some reports have suggested the call influenced the tariff hike, Keller-Sutter has publicly denied any link, stating her expectation had been for a levy closer to 10 per cent, following months of ongoing talks with US officials.
Negotiations to date have involved senior US representatives including Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent. Swiss authorities had believed progress was being made, with a tentative agreement appearing to be within reach.
The tariff escalation has provoked alarm among key Swiss industries that are heavily reliant on the US market. Business associations have warned of potential job losses across sectors such as watchmaking, precision machinery, chemicals, food products and pharmaceuticals.
Recent trade data released by the Swiss-American Chamber of Commerce casts doubt on the US justification for the tariff hike. While the US recorded a goods trade deficit with Switzerland of $22bn in January, that figure shifted to a surplus of $4.2bn in May. The Chamber attributes this swing to advance stockpiling by pharmaceutical companies ahead of earlier tariffs.
Officials have pointed to Switzerland’s decision to remove all tariffs on industrial goods as of January 2024, a move that has enabled over 99 per cent of US products to enter the Swiss market tariff-free.
President Keller-Sutter has expressed regret that a settlement was not finalised last week, despite numerous diplomatic efforts. As the Washington meetings unfold, attention will be closely focused on whether Switzerland’s new proposal is enough to temper the escalating trade dispute.
