Switzerland has expressed its intention to modify its existing negotiation terms to avoid the 39% high tariffs announced by U.S. President Donald Trump. On the 3rd (local time), Reuters reported that Swiss Economy Minister Guy Parmelin mentioned in an interview with RTS that a special meeting of the federal cabinet would be held on the 4th to discuss countermeasures. Minister Parmelin stated the necessity of fully understanding why the U.S. President made such a decision, and once that becomes clear, Switzerland can decide on its course of action regarding the 39% tariff decision.
He acknowledged the tight timeline with the effective date of the reciprocal tariffs being the 7th and mentioned it might be challenging to achieve something in that timeframe. However, he emphasized the commitment to showing goodwill to the U.S. and to doing everything possible to modify their proposal. Minister Parmelin also mentioned potential additional proposals such as promising to purchase U.S. liquefied natural gas (LNG) and increasing Swiss investment in the U.S.
It was reported that President Trump imposed the high tariffs on Swiss goods due to his anger over the lack of effort by the Swiss President to address the trade imbalance. He argued that Switzerland, which records a $40 billion annual trade surplus with the U.S., was effectively stealing money from America and demanded measures to address this. Upon the Swiss President’s failure to meet these demands, Trump was reportedly angered.
Following the presidential call, the U.S. announced that it would impose a 39% reciprocal tariff on Swiss goods starting August 7th. Unlike other major countries that successfully negotiated to partially reduce tariff rates, Switzerland saw an 8% point increase from the initially announced 31% in April, drawing attention to the matter. The U.S. is Switzerland’s largest export market for watches, pharmaceuticals, and machinery, so significant economic impacts are expected.
Minister Parmelin admitted that the presidential call was not successful but clarified that there was no argument during the conversation, as Trump had a completely different viewpoint from the start.
The White House’s press office did not respond promptly to Bloomberg’s request for comment on the matter. However, an anonymous White House official stated that the outcome of the presidential call resulted from Switzerland’s refusal to make meaningful concessions on trade barriers, noting that agreements are impossible without concessions on major items from wealthy nations.