Swiss Hopes to Slash Crippling Trump Tariffs After Golden Charm Offensive
Swiss officials are optimistic about reducing the steep 39% tariffs imposed by President Trump on Swiss exports, currently the highest in Europe. Recent discussions in Washington have been labeled very positive by U.S. officials, indicating progress in the ongoing negotiations.
– Swiss ministers, including Economics Minister Guy Parmelin, report that almost everything has been clarified in these discussions.
– Acknowledging their trade deficit, Swiss leaders are poised for potential concessions that could lead to a meaningful reduction in tariffs.
For months, Switzerland has aimed to alleviate this hefty tariff, which adversely affects its economy. Notably, Swiss industry leaders visited the Oval Office on November 4 with extravagant gifts such as a Rolex gold watch and a custom-engraved gold bar from MKS, a Swiss gold refining firm.
– After initial attempts by Swiss President Karin Keller Sutter met with limited success, a private business initiative last week seems to have shifted the dialogue.
– President Trump remarked that he might reduce the tariffs a little bit lower, though no specific figures were disclosed.
The urgency of this matter is underscored by the recent 14.2% drop in Swiss tech exports to the U.S. since the tariff hike in August. Business leaders from luxury goods and commodities sectors already maintain connections within Trump’s circle, which could be pivotal.
In September, Trump and Rolex CEO Jean Frédéric Dufour were seen together at the U.S. Open, where Trump noted he was aware of the repercussions of the tariffs. Last week, Dufour again met Trump in the Oval Office alongside other business leaders, including Johann Rupert from Richemont.
The norm now is for leaders visiting the Oval Office to bring gifts, as demonstrated by other recent interactions:
– UK Prime Minister Sir Keir Starmer presented an invitation from King Charles.
– German Chancellor Friedrich Merz contributed a framed copy of Trump’s grandfather’s birth certificate.
Despite inquiries, both Rolex and MKS declined to comment on the gifts given to Trump, although he was recently photographed with a Rolex desk clock worth tens of thousands of dollars.
The shift in Trump’s stance towards Switzerland is evident. He mentioned he is working on something to help Switzerland, prompting renewed hope from Swiss officials. Speculations suggest the potential reduction of tariffs from 39% to 15%, matching those faced by Switzerland’s EU neighbors.
In exchange, Swiss pharmaceutical companies have proposed plans to establish more production facilities in the U.S. Additionally, Swiss International Airlines may contemplate transitioning from Airbus to Boeing, though the effectiveness of these efforts remains to be seen.
As the Swiss business community anxiously awaits developments, some firms have expressed intentions to furlough staff if the situation does not improve. Mobilizing influential figures may be critical; FIFA President and Swiss national Gianni Infantino, a longstanding Trump acquaintance, could play a key role. Infantino previously visited the Oval Office with the FIFA trophy, engaging Trump in light-hearted banter about its beauty.
As discussions proceed, the fate of Swiss exports and industry hangs in the balance, contingent upon the evolving dynamics of U.S.-Swiss trade relations.