Switzerland is reportedly making strides towards striking a favorable deal with Trump’s administration that would see its imposed tariffs slashed by more than half. Reports suggest that the European country is negotiating a 15% tariff rate from the current 39%.
Negotiations between Switzerland and the United States have accelerated significantly as the European country tries to secure an improved deal that will oversee the slashing of tariffs imposed by the U.S. government.
The country’s business leaders have stepped up to directly engage with Trump’s administration after months of lobbying on the sidelines, frustrated by failed diplomacy. Once successful, the Swiss bid will result in Switzerland’s tariffs being cut to 15% from the current 39%.
Anonymous tip hints at new tariff deal between Switzerland and the U.S.
People familiar with the matter, speaking anonymously, revealed that Switzerland’s negotiations are pushing for a 15% target that is currently imposed on the EU’s exports to the U.S. According to the tip, the two nations may reach an agreement in the next two weeks.
The anonymous tip also cautioned that the two nations have not finalized anything. They warned that the discussions could still end unproductively, as they did before in July.
U.S. President Donald Trump confirmed on Monday that his administration was working on a deal to lower tariffs. Still, he emphasized that they had not yet finalized the tariff rate for Switzerland. He explained that his administration “hit Switzerland hard,” but they still want the European country “to remain successful” long term.
The news comes after Trump met Swiss business leaders at the White House last week, including executives from major companies based in the small European country.
According to Bloomberg, the Swiss representatives who attended the meeting included Richemont Chairman Johann Rupert, Partners Group billionaire founder Alfred Gantner, Marwan Shakarchi of MKS Pamp, a gold refiner; Jean-Frederic Dufour, Rolex’s boss; Daniel Jaeggi of commodity trader Mercuria; and Diego Aponte of shipping firm MSC.
Swiss business leaders step up to negotiate against Trump’s tariffs
Bloomberg reported last week that the unusual and rare joint effort by businesspeople across Switzerland’s flagship industries highlights the frustration of the small European country, which heavily relies on exports.
Trump confirmed on Truth Social that he had met with high-level representatives of Switzerland and urged the U.S. Trade Representative, Jamieson Greer, to schedule follow-up negotiations.
In late July, discussions were spearheaded by Swiss negotiators, led by President Karin Keller-Sutter. These negotiators initially believed they were closer to securing a deal that would ease Swiss tariffs to 10% only for the White House to impose 39%, a shocking decision that surprised politicians and business leaders.
Trump imposed the heavy tariff on Swiss imports at the beginning of August, making it the highest tariff rate imposed on a developed nation. He noted that the estimated $39 billion U.S. trade deficit with Switzerland was the key reason for the high levy, and that it created a trade imbalance between the two countries. Switzerland tried to counter Trump’s opinion by suggesting the deficit was sparked by the importation of services.
Switzerland already abolished all industrial tariffs, and the U.S. is the country’s top market for exported goods, including luxury watches, chocolate, and machine equipment. However, the dust is yet to settle for Swiss officials and business leaders.
Cryptopolitan previously reported in October that President Karin Keller-Sutter was more pessimistic about the ongoing negotiations. She stated in a newspaper interview that it was impossible to predict the outcome of negotiations and that the decision was made solely by Trump.
According to Simon Evenett, Professor of Geopolitics and Strategy at IMD Business School in Lausanne, Switzerland, exports account for more than 70% of the country’s GDP. Evenett also believes that the country’s global influence has prevailed on its corporations, such as watchmakers, pharmaceutical giants, and commodity traders.
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